Given the recent cryptocurrency economic downturn, many experts are worried about the market’s future.
But recently, so many incidents have occurred suggesting that the newly formed bull market is about close.
A leading cryptocurrency exchange Cumberland recently published its analysis, concluding that the current cryptocurrency market is already at its lowest.
“Price activity is stabilizing after a highly active month. We do not anticipate this paradigm to survive given the nature of crypto and the seismic movements beneath it.” Said Cumberland.
The firm also said that many other minimal but complex factors are reshaping the cryptocurrency market, and it is impossible for the bulls to continue to raise prices.
Bulls are enjoying their few last breaths before they perish. Moreover, cryptocurrency volume and exchanges’ liquidity levels are so minimal that the bulls can’t last long.
The current customer market sentiment is dark, as most crypto exchanges are struggling to sustain their operations, and some of the biggest names are filing for protection against bankruptcy.
The cryptocurrency market’s future shows a further decline in prices as prices will reach new lows.
Two of the most decisive factors which have forced the cryptocurrency market to set for such a low are the collapse of FTX and the demise of Terra stablecoin, taking the momentum away from the marketplace,
This has also pushed the liquidity levels to their lowest ever, further adding Cumberland.
Cumberland Opened Up About the Possible Future Layout of Market
One after another, the quickly occurring developments are making the situation worse for the overall market.
Following billions of dollars in liquidations and trillions of dollars cut in market capitalization, the further price trend depends on what new indicator can force the market to rise as it is experiencing massive issues.
Many cryptocurrency exchanges have already filed for protection against insolvency.
So, the next big issue for the crypto marketplace is if those big names collapsed, how will all the crypto tokens currently listed on those exchanges be injected back into the market, and how the price will be determined?
When investors have pulled out their investment and upcoming crypto launches are delayed, the crypto market faces a shortfall of digital tokens, not enjoying the surplus.
Following the financial collapse of FTX, the market has seen such damaging outcomes. Just imagine if a couple of other big names went down; what would be the outcomes of that?
As of this writing, crypto exchanges are selling their liquid assets and offering massive discounts on their funds to generate the capital to support their operations.
This is a similar mistake being made by FTX and Alameda Research. They could have avoided insolvency if they had not sold their liquid assets.
What 2023 Holds for Crypto According to Cumberland?
The market revival in 2023 is heavily dependent on market adoptions.
Some of the world’s biggest IT companies are building their web 3.0 platforms for crypto. These companies have billions of users who will ultimately use the crypto platforms.
Moreover, no prominent signs can guarantee that prices will be stable for too long, even in 2023.
Volatility is still strong as we are heading toward the New Year. Following this volatile nature, the current bullish price pattern will not stand longer.
But one encouraging sign that Cumberland picked in its analysis is that compared to the previous years, 2023 will see the highest number of institutional investors entering the marketplace.
This means enhanced transparency, improved legal decision-making, and a more secure way of conducting business operations.
Readers must know that all the narrative that is explained above is based on the data collected from various internet sources. Hence this cannot be considered the final guide.
As cryptocurrency is a market of daily ups and downs the current indicators can change rapidly. Just one favorable news can prolong the lifespan of bullish trends in the market.
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