According to Huobi Research, Bitcoin may reach a low of $15000 around March 2023, signalling the beginning of the next crypto market rebound.
In its 2022-2023 annual report, leading crypto exchange Huobi Global predicted that the current bear cycle would end soon, with the crypto market reaching its bottom in early 2023.
The global crypto market had a total market capitalization of approximately $2.2 trillion on January 1, 2022.
The heat of the bear market, on the other hand, has flushed out nearly $2 trillion of its value, dropping to a low of $847.6 billion as of press time.
The bear market of 2022 was exacerbated by macroeconomic distortions caused by interest rate hikes and rising inflation.
Furthermore, the Terra-Luna, Three Arrows Capital, and FTX collapses sparked widespread contagion, forcing many crypto companies into bankruptcy and causing significant losses for investors.
According to Huobi’s report, the decentralised finance (DeFi) ecosystem was particularly hard hit, with total value locked (TVL) across chains dropping by more than 70%.
The TVL of DeFi protocols fell from $171 billion in January to around $55 billion at the end of October, according to DefiLlama data.
The Non-fungible token (NFT) bubble appeared to have burst, as the number of active users fell by 88.9% and the total market cap fell by 42% from $35 billion to $21 billion.
Layer-2 scaling solutions grew faster than other ecosystems last year.
As a result, the total value locked in Layer-2 protocols peaked at $7.5 billion and fell as low as $3.7 billion. However, it has gradually increased to $5.32 billion since the July crash.
Given the price action of Bitcoin, the current $16,945 falls below the 200-Week SMA Indicator. When the 2022 price cycle is compared to the cycles of 2014, 2015, 2019, and 2020, a trend pattern emerges. If historical data is any indication, Huobi believes Bitcoin will soon recover and lead other crypto assets out of the current bear market.
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