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When will crypto recover: historical breakdown and prospects

When bitcoin reached its all time high in 2017 and the markets entered a long cooldown period afterwards, traders and investors had started to worry and ask around, ‘When will crypto recover?

Back then, it wasn’t necessary to make any distinction between bitcoin and any other crypto currency on the market. Bitcoin had the highest market capitalization at the time (as it has now); whatever happened to it, happened to the crypto market at large.

With a short delay, the pattern of the ether price repeated that of bitcoin. There were the periods when the price movements were almost identical. It was correct to assert that the answer to the, ‘When will crypto market recover?’, question was directly related to the fate of bitcoin.

2017 was such a huge breakthrough because Securities and Exchange Commission and Commodity Futures Trading Commission representatives had started to reluctantly acknowledge its existence as a new kind of asset that would probably need its own method of regulation.

But immediately after the optimistic rise, normalization followed. The deep dive of bitcoin in 2018 correlated to its periodic mining reward halvenings (beside the natural waves of supply and demand).

What is the state of affairs in 2021 though?

When will crypto market recover: the ongoing dive

2017 was both a tough and fruitful year for cryptocurrencies. For example, Enjin and Chainlink both appeared at that time, when bitcoin was still surging. And when it fell, they experienced the drop, too. These two were among the surviving coins while so many others failed and never re-entered the market… Does it imply an opportunity?

When will cryptocurrency recover: how you can profit right now

Of course, bitcoin retains tremendous influence, but a distinct purpose of a given token and behavior of its holders ensures relative independence of its price from bitcoin’s.

Compare the price charts of ENJ and BTC and you’ll see no direct correlation. Moreover, ENJ did a 2000% jump in a year, and bitcoin didn’t.

That said, if bitcoin is declining right now, it is the high time to look around and support an interesting project that has just appeared on the market. Its price is as low as it can ever be.

When will cryptocurrency recover: bitcoin halvings and you

We’ve mentioned that the BTC price goes down in relation to the dates of halving but we didn’t mention the exact dates and the estimated length of the periods of decline.

Here’s a chart BeinCrypto posted more than a year ago:

Source.

It only takes 4-year periods into account, but so far the predictions turned out accurate, and the price of bitcoin didn’t drop below the blue line. According to it, the price should keep rising over the course of 2020.

As of the shorter cycles, there are approximately four of them a year. Bitcoin reflects the state of the cryptocurrency market at large. So one vague answer to the question, ‘When will crypto market recover?’, is: in about half a season. It would be an extreme approximation regarding only a local recovery.

When will cryptocurrency recover: weekly corrections

So far, we have figured out that the dumps of famous coins are temporary. The cryptocurrency market, taken as a whole, never really devalues over time, if we look at its all-time history up to this point.

Thus, the question, ‘When will crypto market recover?’, only makes sense when we specify the period. And we have done our best to review two periods: a longest possible 4-year period, tied to bitcoin’s halvings, and a hypothetical seasonal period that is so susceptible to plenty of other market factors that it’s hard to take it into consideration at all.

Some traders have an opinion that crypto market correction takes place every Wednesday. Is it a speculation or a careful observation?

When will crypto recover… wait, which crypto, exactly?

Do you remember how we talked about the coins that have a strong character and resist the swings of the market? Polkadot (DOT) is an example of such a coin. In the first week of April 2021, despite the general bearish mood of the market, it stubbornly kept its value while, say, both BTC and ENJ fell. It tells something about its value for users, right? By the way, Chainlink held its positions, too.

Every coin has its own price pattern. The prediction concerning the time it starts gaining value will be maximally precise if that pattern, the nature of the project that the coin represents, and the changes of the market in general are taken into consideration.

When will cryptocurrency recover and what keeps it from recovering

Although, even now, we are still far from all-around adoption, the discourse of major financial institutions implies that cryptocurrencies will be gradually accepted as a fully legal alternative to money: digital, safe, and overseen by central institutions.

Still, there’s some uncertainty that is heated up by the on-going court case against Ripple. If the SEC wins the case, the whole cryptocurrency ecosystem will suffer a serious blow. If Ripple takes the upper hand, all the prices will likely skyrocket. It would also be great to see some regulation—not restriction!—in the domain of cryptocurrencies. Until then, the uncertainty keeps major investors and solo professionals from supporting the projects they would otherwise back up without a second thought.

When will crypto recover: final thoughts

Being able to predict the prices is all well and good but preserving the earnings is even more important. It will never hurt to check out on the security of your assets if there’s not much to trade at the moment.

  • Take care of the exchange website account security. However unlikely, if a hack occurs, all the assets stored in that account will be lost.
  • Enable 2-factor authorization.
  • Never transfer sensible data to HTTP sites. HTTPS, on the other hand, encrypt your data.
  • There’s nothing wrong in writing the password on a piece of paper. It’s a reliable old-school data storage medium, but you better keep that paper somewhere safe.
  • Some cryptocurrencies require you to copy and / or memorize multiple keys to access your accounts (e.g. private key, posting key, passphrase, etc): same rules apply here.
  • If you use an online wallet, back it up with a mobile app, full node, or hardware wallet, if possible.
  • Your blockchain address should be copied and written down, too, in case you uninstall the software that kept your data or access the wallet from a new device.

That would be it! When will crypto recover? How do you protect your data? You’re fully equipped with knowledge for the next x10 portfolio boost.

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