While the price of Bitcoin is consolidating between $16,000 and $17,000 at the time of publication, a new analysis is giving investors hope that the crypto winter may soon be over.
A lot of darkness in the crypto market
The well-known analysis company Santiment sees a peak in the negative mood. After the big bear market in 2022, the crash of the FTX stock exchange and the tight interest rate policy of the FED this year, Santiment sees a very large displacement in the market, which cannot be overcome.
“There is a lot of doom and gloom in crypto right now. Binance FUD, Jerome Powell’s hawkishness and the ongoing headline [Sam Bankman-Fried] – many reasons why obedience is widespread until the end of the week. Historically, this uncertainty marks a low point,” Santiment explained via Twitter.
Nigeria wants to allow the purchase of Bitcoin again
Meanwhile, there is also good news from Nigeria for the crypto sector. The African country seems to want to overturn a ban on crypto activities from February 2021 and pass a new law recognizing Bitcoin and crypto currencies. According to an official statement, Nigeria wants to use this step to create a more efficient and dynamic capital market.
The decision is also likely to be a reaction to the fact that residents of the country do not seem to have much interest in the eNaira digital currency, which is issued by Nigeria’s own central bank. The adoption rate of the eNaira is said to be only 0.5 percent more than a year after its introduction in November 2021.
Extremely keen interest in Bitcoin
According to studies, Nigerians are generally very interested in digital currencies. According to an analysis, the website CoinGecko describes Nigeria as the strangest nation in the world when it comes to cryptocurrencies. Search queries from Nigeria on the subject of Bitcoin also became the first worldwide on the Google search engine.
There are good reasons for the great interest in buying Bitcoin in Nigeria. Due to the high inflation, poor economic situation and difficult access to the banking system for many Nigerians, they are looking for an alternative. Bitcoin, as a deflated digital asset that offers easy access and transfer, could be a boon to many Nigerians.
New Crypto Hub in Nigeria?
The country’s government now seems to recognize this and is saying goodbye to its previous protectionist attitude towards Bitcoin, although the officials do not want to speak fully here.
In September, Nigeria is said to have started talks with crypto exchange Binance to create a crypto-friendly corporate landscape. Apparently one hopes to stimulate the country’s ailing economy through openness to the financial technology industry.
Bitcoin weak against altcoins
In the short term, however, this move has no effect on the price of Bitcoin, as shown by the still weak BTC/USD trend. The question becomes whether Bitcoin can regain dominance in the crypto market in the future or whether the weakness compared to the overall market will continue.
2021 was a successful year for BTC buyers as a new all-time high was reached, but it has been noted that many Altcoins recorded much stronger growth. And even in the bear market of 2022, Bitcoin failed to regain dominance as it did in the previous cycle.
Bitcoin fails to build strength in bear market
The BTC dominance chart shows that Bitcoin currently has a market share of 42 percent among all currencies. This is a similar level to the 2021 bull market.
For comparison, between the bull market of 2017/2018 and the end of the bear market of 2019, bitcoin dominance increased from 35 percent to more than 73 percent. Bitcoin is far away from that this time.
This could suggest that the bear market will last much longer than some believe, and that BTC will take longer to pull down altcoin strength.
💥 Bitcoin’s dominance is at May ’22 levels.
If people expect more capitation (which most of them are) then we will see further altcoin sales and continued rise in Bitcoin and Ethereum dominance.⬆️⬆️⬆️
The current fear in the market can be an incredible opportunity.🪙 pic.twitter.com/bvzCoAb2UB
— Kyle Chassé (@kyle_chasse) December 14, 2022
Is Bitcoin Obsolete or Are Altcoins Dead Soon?
However, it is also possible that Bitcoin will not be able to build on the strength of the past and Altcoins will continue to gain market share. Bitcoin critics repeatedly complain that the blockchain with the proof-of-work consensus mechanism is not up to date and suggest alternatives like Ethereum or Cardano as more sustainable.
On the other hand, there are Bitcoin fans who see BTC as the only true cryptocurrency that follows Satoshi Nakamoto’s original idea, while other cryptocurrencies are run by profit-oriented companies that often have no sustainable concepts. Many bitcoin maximalists believe that all altcoins will die sooner or later and only BTC will survive.
Altcoin death rate in 2021 higher than ever
A new study builds on this topic and comes up with interesting results. 951 cryptocurrencies, which were only listed on the Coingecko price website in 2022, are now dead.
This number sounds high, but according to the analysis, more than 3,300 new cryptocurrencies “died” in the 2021 bull market, which corresponds to almost 40 percent of the newly listed tokens. However, the average “death rate” of new cryptocurrencies as of 2018 is less than 1,000 per year.
The analysts attribute this to the fact that a very large number of tokens were thrown on the market in 2021 to make a quick profit due to the euphoria of the market. This is particularly significant in the realm of meme tokens. Apparently, many providers wanted to be carried by the incredible wave of success of Dogecoin and Shiba Inu.
Despite the many dead cryptocurrencies, the dominance of Bitcoin is still low, which can also be attributed to the strength of some well-known altcoin projects such as Ethereum, BNB or Cardano, which despite the mark market is still valued in the billions of dollars.
Bitcoin price prediction: 150 percent increase in 2023
In these difficult market conditions, where can the price of Bitcoin go in 2023?
According to Digital Coin Price price predictions, BTC will rise above $43,000 in 2023. That is a growth of more than 150 percent. For the year 2025, analysts expect a new high of $75,000 for Bitcoin. BTC is expected to break the $100,000 mark in 2028. In the long term, the forecast even sees Bitcoin rising to more than $325,000.
Another option: Sign a new fight out in advance
The new Move 2 Earn Fight Out project has now raised $2 million. This shows that many investors seem to be interested in buying FGHT, the native token, and want to get the low pre-sale price. There is also a 50 percent bonus for quick buyers.
Fight Out is committed to the new Metaverse and aims to revolutionize the way we move and make money. Incidentally, behind the development is a team represented by fitness experts. You can find more about Fight out in the white paper.