All cryptocurrencies have been in a rough spot for a few months, approaching a year now. The prices fluctuate slightly, but generally, the trends are not so promising. The stock market is facing a similar challenge, but that is a different discussion. I believe this trend will continue for at least two to three years. Here's why.

Economy

Some countries are affected less, some more, but it's irrefutable that the global economy is not performing well. Many people are struggling with basic needs and focusing on surviving. When money is short, priorities change, and people try to make ends meet. As crypto investment is risky, sane individuals are refraining from it.

Interest rate

The interest rate is much higher than in the crypto boom era. It raises the question of why someone shouldn't put money in the bank instead. It's less risky and much safer. Of course, the gain is smaller so does the losses.

Generative AI

Crypto is no longer the new cool kid on the block; generative AI has taken over instead. But why does that matter? Because much of the crypto hype was due to media attention, with influencers promoting rug pulls and pump-and-dumps, and Elon Musk taking Dogecoin to the moon. However, now the attention has shifted to Chat GPT and generative AI. Grifters, influencers, and fake gurus are now pedestalizing AI instead.

Conclusion

I believe the crypto market will not see any revolution or hype soon, at least not in the next two or three years. Of course, this is my view and not backed by any statistics. One should do their due diligence and conduct proper research before making significant financial decisions.

However, what I often question is the actual value of crypto. Is $60K per BTC the real value, or is it overpriced or even underpriced? My gut feeling is that the actual value of BTC is somewhere between $10-20K, and what we witnessed between 2020 and 2022 was an inflated number.

Credit

• Thumbnail image by 0fjd125gk87 from Pixabay
• Inline image by Steve Buissinne from Pixabay