VOT Research Desk
According to the Leading cryptocurrency exchange Huobi Global prediction the current bear cycle may soon be over, as it expects the crypto market to reach its lowest level in early 2023.
On January 1, 2022, the global crypto market had a total market capitalization of roughly $2.2 trillion. Bitcoin may reach the level of $15000 around March 2023, which will signal the next crypto market rebound.
As of the time of publication, however, the bear market’s heat had drained out about $2 trillion of its value, bringing it to a low of $847.6 billion.
The 2022 bear market was made worse by macroeconomic distortions brought on by rising interest rates and soaring inflation. Additionally, the collapses of FTX, Three Arrows Capital, and Terra-Luna resulted in widespread infections that have driven several cryptocurrency businesses out of business and caused investors to lose a sizable amount of money.
According to Huobi’s study, the ecosystem for decentralized finance (DeFi) was particularly hard affected, with the total value locked (TVL) across chains falling by over 70%.
The non-fungible token (NFT) bubble appeared to have burst as its number of active users fell by 88.9% and its total market cap declined by 42% from a high of $35 billion to $21 billion.
Layer-2 scaling solutions experienced more growth than other ecosystems over the course of the year, falling from $171 billion in January to roughly $55 billion at the end of October, according to DefiLlama data.
Consequently, the overall value locked in Layer-2 protocols peaked at $7.5 billion and hit its lowest point at $4,7 billion. But it progressively increased to $5.32 billion after the crisis in July.
Numerous financial institutions with excessive leverage were destroyed in the recent FTX meltdown. It is anticipated that the overall impact of the collapse would extend until the first quarter of 2023.
The crypto market is anticipated to bottom out when BTC and ETH values trade around $1,500 and $1,000, respectively.
