The cryptocurrency market is notoriously volatile. That could mean a drop of more than 50% in a few months and a rapid rise in prices. Prices have trended lower in recent months after spiking in November 2021. It's not clear if this is part of a larger crypto market rout. Cryptocurrency prices could fall, and investors need to be prepared.

Based on the historical situation of the past five years (2017-2021), the overall scale of global full-disk encryption software, the scale of major regions, the size and share of major enterprises, the scale of major product categories, and the scale of major downstream applications were analyzed. Size analysis includes volume, price, revenue and market share. According to the forecast of the development prospect of full-disk encryption software in the next few years, this paper predicts that by 2028, it mainly includes the forecast of global and major regional sales volume and revenue, the forecast of classified sales volume and revenue, and the forecast of the sales volume and revenue of major applications of full-disk encryption software, etc.

If we use the preceding classification of wealth, capital and currency, Bitcoin and other cryptocurrencies can be considered as assets, because they may increase or decrease in value, which can bring new assets. But not money? It depends on what category. If it's limited to the crypto world, it's already measurable, it's money. But when it comes to the real physical world, such big price swings clearly don't count as money.

Expectations are high that the Fed will raise rates faster and more aggressively. In addition to the Fed's original announcement that it would start to shrink its balance sheet in June, the US stock market fell sharply, accompanied by the gold and cryptocurrency markets, especially the cryptocurrency led by Bitcoin, which plunged by more than 30%, with bitcoin price approaching $20,000 per coin.

The NFT market has both similarities and differences from the traditional crypto market. At present, the NFT market is also closely related to the traditional crypto market and will inevitably be affected by the general market, but at the same time, the NFT market is more "slow" than the traditional cryptocurrency market. When the market volatility is large, the NFT market will not respond quickly.

However, from a macroeconomic perspective, the market remains more optimistic about cryptocurrencies: inflation remains persistent, cryptocurrencies have become an important safe haven for investors, and the market has a bullish trend again.

On April 16, 2021, the Central Bank of Turkey announced a ban on the use of crypto assets in payments, which will take effect on April 30, considering that the market value of crypto assets is highly volatile and irrevocable, which poses significant risks for transactions and can also be used for illegal acts. The announcement has big implications for cryptocurrencies, as Turkey is the most important player in the Middle East cryptocurrency market. On April 18, Reuters reported that the Indian government would ban cryptocurrencies, impose fines on people who trade or own them in India, and even make them a crime. If this bill is enacted, cryptocurrencies will face the strongest regulation in India.

In February, the network traffic of cryptocurrency trading platforms decreased by more than 20% month on month. The downturn of the market makes the trading volume and the number of monthly activities decline, which is normal. Only by participating in the market against the thoughts of the majority of people, can you really finish buying low and selling high.

The crypto market is an exciting, explosive, speculative space, and its future is uncertain. Compared to equity markets, which are based on more predictable cash flow and earnings trends but still can't be easily predicted, the cryptocurrency market is still the Wild West. In many ways, however, the predictions and beliefs of the crypto market can be translated into reality. Bitcoin was invented out of thin air by a still-unknown founder, but is now accepted as legal tender in at least one country (El Salvador), and a growing number of merchants accept it as a method of payment. Dogecoin, which is literally a joke, is now worth $22 billion, and the entire cryptocurrency market crossed the $3 trillion mark in November. So whatever your views on cryptocurrencies in general, there's no denying that the asset class is increasing in size and popularity.

Words in the End

The increasing popularity of high-speed Internet coupled with the accessibility of legal virtual currencies is one of the key factors driving the growth of the market. In addition, major players are launching mobile applications with features such as two-factor authentication, end-to-end encryption and online payment solutions. This, along with the growing number of websites offering cryptocurrencies and rising personal income levels, is driving the market. In addition, the emergence of Bitcoin Cash and Lite is expected to provide profitable growth opportunities for industry investors.