What Does A Crypto Recovery Look Like?

Key takeaways

• The crypto market started falling from its peak price in November 2021 but didn’t technically enter a “winter” phase until June 13, 2022.
• Past trends would indicate the crypto winter will last another three to four months, but it would take another three years for prices to recover to their November 2021 glory fully. Trusting past trends may be a fool’s errand on such a new commodity.
• Government policies worldwide are likely to impact crypto’s recovery, or lack thereof, and are partially to blame for the slow burn they’ve been experiencing throughout 2022. That may be bad for crypto but good for the planet.

Cryptocurrencies have had a major down year. If they were a financially sound stock and you were a long-term investor, that would make this as good a time as any to buy. But cryptocurrency markets don’t act like the stock market, making it difficult to assess if crypto will ever recover.
Why crypto isn’t as easy to predict as the stock market
Crypto doesn’t have a very long history. Bitcoin, the first of the current generation of digital currencies, launched in 2009. The New York Stock Exchange, for comparison, began in 1792. We can easily look back at historical stock market trends, but we don’t have enough data for crypto to understand how it functions under different economic conditions.
Additionally, the cryptocurrency markets are less regulated than others, such as the stock market. While agencies like the Securities and Exchange Commission (SEC) and FINRA keep close tabs on investment firms in the stock market, crypto companies operate with relatively little oversight. That puts investors at additional risk, including the added risks of scams and fraud.
Continue reading: https://www.forbes.com/sites/qai/2022/09/17/what-does-a-crypto-recovery-look-like/?sh=4409c3926a63