Although bitcoin has been appreciating sharply recently, it is still too early to declare the end of the bear market. In the accumulated 2022, bitcoin continues to depreciate, with a price far from November 2021, when the crypto asset reached almost US$ 70,000 on the market.
But, a few events may end this period of low prices. Although even with halving still distant, the event will only happen in 2024, the crypto market may be surprised by some events.
May the bear market come to an end?
The first of these concerns is the long-awaited upgrade of the Ethereum network. By the end of 2022, the network should implement the proof-of-stake protocol, which will reduce the use of data mining and make Ethereum more attractive with lower fees.
Approval of a bitcoin spot ETF should also positively impact the crypto market. This way, the crypto asset would be traded on the stock exchange through a fund linked to the daily price of the digital currency. However, so far, only futures-backed ETFs have been approved by the SEC in the United States.
The US Fed may reflect on the bear market with its policy of raising interest rates. In other words, when this interest rate hike ends, risky assets like bitcoin should once again attract the financial market.
The adoption of bitcoin as legal tender could put an end to the bear market. The greater the use and recognition of the crypto asset, the greater the chance of increased adoption of the entire crypto market. Therefore, only El Salvador and the Central African Republic have classified the digital asset as the country’s official currency.
Finally, the use of bitcoin as a means of payment can boost the crypto market and the bearish sentiment in prices. Should bitcoin be adopted as a form of payment by a large company, the bear market could end.