The multiple deaths of Bitcoin Has the cryptocurrency market reached the point of no return?

Bitcoin's Demise Has the Cryptocurrency Market Passed the Point of No Return?

Source: Web3 Front

During market downturns, Bitcoin has been declared dead more times than you can imagine, but it always manages to bounce back successfully.

During bear markets, Bitcoin and the broader cryptocurrency market have been proclaimed dead multiple times, but some experts suggest that it can only truly die if a series of truly extreme events occur.

According to 99Bitcoins (a website that tracks the number of times mainstream media has declared Bitcoin (42,193 USD) dead), the largest cryptocurrency by market capitalization has died 474 times since 2010.

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Typically, this statement is met with cheer from cryptocurrency skeptics, as it proves that BTC is not a viable asset, but eliminating cryptocurrencies may not be that easy – at least according to some experts in the field.

Bitcoin reached 69,000 USD a year ago. One of the main reasons for this incredible rebound is the leverage provided by unprecedented cryptocurrency advertising and speculative buying. The collapse of FTX proves that the entire rally was a scam. It will never be repeated. Bitcoin frenzy is over.

— Peter Schiff (@PeterSchiff) November 11, 2022

Tomasz Wojewoda, the Head of Business Development at BNB Chain, believes that ending BTC and the cryptocurrency market requires more than just a bear market or a cryptocurrency winter, although Bitcoin and the cryptocurrency market have experienced particularly severe declines since reaching their all-time highs in 2021.

A bear market is when the value of cryptocurrencies falls by at least 20% and continues to decline, while a cryptocurrency winter refers to a period of long-term low asset prices in the market.

Wojewoda told Cointelegraph that in his opinion, the only way for BTC and the broader cryptocurrency market to die is if extreme circumstances occur, such as the underlying community losing interest and everyone immediately exiting the field.

However, he believes that this scenario won’t happen anytime soon. Regardless of the failure of legends like FTX and other dramatic events in the field, Wojewoda believes that “there will always be demand for cryptocurrencies.”

He said, “The cryptocurrency market, like any market in the economy, fluctuates based on market sentiment and demonstrates upward or downward trends.” “The market has experienced multiple bear markets, but historically, we have seen the market recover from similar trends.”

In 2011, 2013, 2017, and 2021, cryptocurrencies experienced massive value surges, only to crash afterward. So far, after every crash, the price has recovered after a few years.

Overall, this bear market and cryptocurrency winter have been especially harsh. According to CoinGecko data, Bitcoin lost over 60% of its value in 2022 after reaching a high of over 69,000 USD in 2021. As of 2023, Bitcoin has made a recovery but is still down by around 40% from its all-time high.

Wojewoda says that challenging times like this are actually positive for the industry, rather than a sign that cryptocurrency is dying out, although it may seem that way. Specifically, he believes that market crashes can help eliminate bad actors.

He also sees this as a “strong period for projects focused on building and improving user experience.”

Regulation won’t kill cryptocurrency

Banking regulators seem to be trying to strangle or dismantle the cryptocurrency industry, launching a series of lawsuits and intimidating regulatory measures. Some are concerned that this could spell doom for the industry.

The U.S. Securities and Exchange Commission, led by Chairman Gary Gensler, seems especially aggressive towards cryptocurrency companies. Gensler stated that his agency has brought more than 780 enforcement actions in 2023, including over 500 standalone cases.

1/ Today Coinbase received a Wells notice from the SEC focusing on staking and asset listings. Wells notices typically precede enforcement actions.

— Brian Armstrong️ (@brian_armstrong) March 22, 2023

However, cryptocurrency and Bitcoin have survived. Regulation is being implemented slowly and, in some cases, poorly. Wojewoda believes that some form of regulation is ultimately a good thing for the industry and will not be the cause of its demise.

“Global regulation can impact cryptocurrency’s growth; however, as more and more countries worldwide embrace cryptocurrency, I don’t think it will be the reason for cryptocurrency’s ‘death,'” he says.

“Regulation is a good thing for the industry. It can ensure user safety and clear frameworks allow the industry to build around it.”

Some cryptocurrencies may disappear, but the industry will survive

Wojewoda believes that the cryptocurrency market will weather this cryptocurrency winter and beyond. He thinks it may survive as a concept, but not all projects and currencies will stand the test of time.

According to Exploding Topics, as of November 2023, there are over 10,500 different cryptocurrencies in existence. However, it is estimated that only 8,848 are still active in the field, with other cryptocurrencies disappearing or ceasing to exist.

“Projects without actual use cases will disappear, but projects that make a real impact not only survive but thrive,” says Wojewoda.

“There are many factors that will impact the development trajectory of cryptocurrency, such as emotions, regulations, and other factors like Bitcoin ETF applications and the upcoming Bitcoin halving,” he adds.

New research note I wrote today. We still believe there is a 90% chance of approval for a #Bitcoin ETF spot by January 10th. But if it comes earlier, we enter into a window where *all* current applicants *might* get an approval wave pic.twitter.com/u6dBva1ytD

— James Seyffert (@JSeyff) November 8, 2023

In the long run, as weaker players exit, Wojewoda believes that certain cryptocurrencies will be replaced by new and better technologies, which is not “impossible”.

He believes that Bitcoin will not be a victim because its network effects and user base give it a significant advantage over other cryptocurrencies.

“In terms of market share, Bitcoin may still be the most popular cryptocurrency. I think we may see more changes in the rankings of cryptocurrencies that offer practical applications,” Wojewoda said.

“These projects go beyond the scope of digital currencies, and the technology is constantly evolving to find new use cases and applications in the real world.”

These applications are one of the reasons Wojewoda believes the market will continue in the long term. While not everyone will succeed, the broader crypto market and Bitcoin will survive.

The market will rebound, BTC remains strong

Markus Thielen, Director of Research and Strategy at digital asset investment company Matrixport, also doubts that the bear market or crypto winter pose a real threat to the crypto market and BTC.

Thielen, in an interview with Cointelegraph, said that while many people exited the field during the bear market, it is a normal part of the process and not a sign of cryptocurrencies about to disappear.

“Last year, many people were excited about the crypto industry because these companies expanded near the top of the previous bull market,” he said.

“Without additional funding from sufficient revenue and venture capital, these crypto companies had to adjust their company size.”

Adjusting the company size is a restructuring process carried out to earn profits more efficiently and meet new business goals. Scaling often involves reducing staff, adjusting senior management, and other cost-cutting measures.

“As long as value can be transmitted electronically, cryptocurrencies have value propositions that are difficult to match with traditional banking tracks,” Thielen added.

So far, there have been four bull markets – in 2011, 2013, 2017, and 2021 – each time attracting record numbers of people into the field who then disappear when the bear market strikes. Bull markets are characterized by rising prices and optimistic investors.

Thielen believes that each bull market is built on a new narrative and this trend will continue. He predicts that a different narrative for the fifth bull market will emerge soon.

“With regulatory agencies approving Bitcoin futures in 2017 and potentially approving Bitcoin ETFs in 2024, the regulatory competition has been strengthened,” Thielen said.

“I can’t imagine Bitcoin disappearing because the idea of Bitcoin falls into the hands of human fallacies.”

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