Bitcoin is the king of crypto. The first-ever crypto to be launched, Bitcoin still holds the numero uno stand in the crypto ladder. BTC is also the crypto with the highest market cap. The coin reached its highest rate of market cap till date in November 2021, clocking up a whopping $1.28 trillion. However, cut to 2022 November, the BTC market cap has plummeted down to a highly disappointing $392.41 billion. Does that mean Bitcoin value is on decline? Would Bitcoin market cap be able to rise in future?
The post below offers a brief on the future prediction of BTC market cap. But, before getting into that, let’s look into the key factors that have caused the recent dip in Bitcoin market cap.
Factors behind decline in BTC market cap
Bitcoin reached up to its 2nd ATH in the last quarter of 2021, reaching up to an awe-inspiring rate of around $68,000. The same coin is now hovering around a much lower $20,000, as of November 2022. It’s self-explanatory why investors, especially investors, are apprehensive about putting their money in Bitcoin.
Now, the recent decline in BTC market cap has been brought on by a multitude of factors.
Market correction
The moment after a coin or an asset reaches the ATH, the price takes a dip after a short while. You might remember the 2018 winter in the crypto world that came soon after Bitcoin reached its first ATH in 2017. It’s the way through which the asset market enters a correction phase. The crypto market too is following the same pattern; in fact, such a behavior only shows that the crypto market is maturing.
The 2022 crash
The mid-quarter of 2022 was no less than a nightmare for the crypto world, leading to a whopping loss of around $1 trillion. The crash brought down all the cryptos including Bitcoin, leaving the king of crypto with a declining market cap.
The crash itself was a culmination of various factors and all of them had a negative impact on Bitcoin and its market cap. Added to rising inflation in the USA, the other factors that led to the crash are on-going Russia-Ukraine war, declining stock rates, and the financial attack on stablecoin Terra-Luna.
BTC HODLers remaining inactive
According to experts, another reason behind falling market cap for Bitcoin is less activity from Bitcoin HODLers in the crypto market. The world is engulfed by an ongoing economic crisis lately and majority of Bitcoin HODLers have preferred to wait for a while in the hope of better price in near future.
Would BTC market cap be able to rise?
So, we have come to the center of our discussion.
Looking at the steep decline in the BTC market cap, it’s natural that a lot of crypto investors are wondering whether the Bitcoin market cap would be able to restore its former glory. Well, the majority of crypto experts are optimistic that Bitcoin would experience a surge in market cap in the near future.
Proven recovery
The market cap of Bitcoin dipped below $100 billion after the crypto winter in 2018 while the coin reached a whopping $100.1 billion cap just after 2017 ATH. But by the last quarter of 2020, Bitcoin pleasantly surprised the crypto world by scaling up to a solid $250 billion in market cap. From 2020 November to 2021 February, Bitcoin rose at an awe-inspiring scale of 321 percent that even led the coin to cross the coveted $1,000 billion range for a while.
Bottom line is, Bitcoin has always proven to buck up and rise enormously after every fall. Thus, it won’t be exaggerating to expect that the king of crypto would again rise up like a phoenix, surprising us with an even higher market cap than ever. A large group of crypto experts have predicted that the BTC price might touch the $100,000 mark by the last quarter of 2025. If the prediction comes out to be true, Bitcoin will stand out with ATH market cap. Also read crypto to pay for products
Rising adoption
A major reason why crypto experts are optimistic about the rise in Bitcoin is growing adoption of the coin. As of now, over 15,000 businesses have started accepting Bitcoin. Be it for payment or investment, or trade, Bitcoin still commands the highest attention. From food and beverage to travel, almost every industry that accepts crypto payments today accepts Bitcoin.
Bitcoin also receives the highest volume of institutional investment. If we go by the numbers of 2021, Bitcoin has received $6.3 billion from institutional investment alone. Recent survey revealed that more than 50% institutional investors hold BTC as an investment.
Final words
Based on the above discussion, it would be safe to conclude that Bitcoin is poised to restore its sunny days in near future. If you have been looking forward to taking part in the Bitcoin bandwagon in the hope of higher returns in future, invest now when the prices are still low. We will wind up the post with a few pro tips on Bitcoin investment.
Go for HODLing
Now, that Bitcoin is going through a bearish phase, the coin will take some time to get back to the bullish days. Thus, if you buy Bitcoin now, don’t trade it off immediately. Wait for a few years for the price to rise higher. It’s better to settle with HODLing when you are going for a large-cap crypto like Bitcoin. As mentioned above, Bitcoin might touch the $100,000 mark by the year 2025. So, if you buy now, wait for 3 years for the market cap to rise so that you can sell at a higher price.
Start small Never invest life savings in Bitcoin or any other crypto for that matter. A lot of people tend to commit the same mistake hoping if they deposit a huge amount they would receive an astronomically high return. It’s true that the crypto market does promise way higher returns than traditional assets but the crypto industry is also extremely volatile. So, you should only allot a small amount to ensure safe play.
