The Crypto Market Boom or Bust Debate: Is There More to the Crypto Boom, or Was That It for EU Businesses Seeking Revolutionary Digitisation?
Is the crypto industry worth investing in as a business or service provider in the EU or Germany? Will crypto enter another boom or bust cycle? Will Trump’s reinstatement reinforce investor security and confidence? How can your business leverage cryptocurrencies and assets safely?
The cryptocurrency industry may not be dead. In fact, new market changes and Trump’s re-election may have the potential to help German or EU businesses transcend to a new business model.
The crypto industry boomed in 2008 after the real estate market collapsed. Satoshi Nakamoto created the first cryptocurrency in January 2009. Crypto investors quickly latched onto the virtual currency at a fraction of today's price.
Some investors doubled their investments in no time. First adopters smiled with the rapid ascent. The cryptocurrency industry boomed faster than many bankers expected, particularly the Bitcoin and Ethereum digital assets.
The initial crypto enthusiasts entered a bull market connected to the digital asset industry, uncertain of future market performance. However, market sentiments weren't shared by every investor, and some market analysts considered the riskier assets as having only temporary potential for growth.
Still, the investor sentiment wasn't shared among all financial institutions and investors. The crypto industry had many boom-bust cycles, but will the commitment to cryptocurrencies allow those who leveraged trading to continue seeing growth potential?
The past and current state of Ethereum and Bitcoin will reveal answers. Let's discuss the initial offerings versus the current financial situation, market trends, market crashes, and the mainstream acceptance of crypto technology to discover whether continued growth is possible to inform investment decisions better.
Understand the Cryptocurrency Market Capitalization and Regulations to Leverage Better Cryptocurrency Investments
Forbes suggests that crypto assets, including Bitcoin (BTC), Ethereum (ETH), Solana, Binance, and Tether, are surging, reinforcing the confidence of institutional investors. Crypto investments are rising in the digital asset space despite market and investor sentiments.
Central banks always controlled the basket of assets, whether traditional or as a digital financial asset. Many retail investors, central banks, and financial firms were initially skeptical of the crypto exchange and crypto transactions using digital wallets.
However, cryptocurrency was an emerging asset class that transformed the typical asset classes set out by financial institutions, including real estate or other digital currencies like credit cards. Market volatility and crypto-asset regulation were investors' fears.
Billions of dollars, euros, and pounds were at stake. Crypto regulation from a central authority was the first step to helping anyone bank digital assets without worrying about criminal activity or the suspected bears' market entry for crypto investments.
CNN reported that the crypto market fell prey to illicit activities and crypto hacks in 2023, costing investors $3.8 billion or 3.4 billion euros. The sudden crypto bull cycle also required regulations to ensure investor safety should the digital currency enter the bear markets.
Fortunately, the European Parliament instituted strict regulations with a regulatory framework on markets in crypto assets (MiCA) in 2023, even including frameworks that allow EU businesses to protect their crypto market capitalization from non-EU members.
Still, SEC Chair Gary Gensler told CNBC that the crypto market needed more investor protection in September 2024. The financial asset faces similar market dynamics to other asset classes, showing that the crypto space requires more stringent regulations.
Additionally, crypto firms that provide services with technological advancements for financial transactions must solidify the cryptocurrency industry by providing more educational resources for any financial advisor, investor, or institution.
Investor protection also extends to blockchain technologies, with the oversight of the Delta Blockchain Fund, which helps source investors for crypto firms looking to capitalize on digital tokens. The Delta Fund is an early crypto venture hedge fund.
European firms adopting cryptocurrency can have some peace of mind knowing that clients can bank digital assets with some protection. The financial situation may be leaning toward decentralized finance, but the world is fast evolving with blockchain and Bitcoin ETF.
Besides, the Council on Foreign Relations says that the future of money is in Blockchain Technology Monetary Policy International Finance that uses cryptography principles to mint virtual coins that are exchanged on decentralized blockchain networks between blockchain applications and users.
Regulations, frameworks, and decentralized blockchain networks make crypto safer. Still, the crypto-assets market has experienced a few market crashes. Discover the market trends to align your crypto transformation with better investment objectives.
Using Crypto Price Fluctuations and Market Trends to Inform Investment Strategies
Bitcoin has experienced a major growth phase along with other cryptocurrencies. The price daily fluctuates as much as the traditional Nasdaq. However, discovering growth potential, daily prices, and other trends could help you make informed decisions.
Let's compare two well-known crypto exchange platforms to see how big the difference could be, revealing how investors could use our FinTech Acquisitions and Investment experts to inform market-specific investments in digital currencies or tech.
Bitcoin Market Trend
The Bitcoin price history shows that it sold for a mere $0.0009 or 0.00083 euros when it began trading in January 2009. By December 2015, the days of trading saw the Bitcoin price rise to $430 or €394. Bitcoin, being the oldest, has seen the most fluctuations.
Meanwhile, the Business Insider showed the Bitcoin 2024 October value at a staggering $68,823 or €63,190 with a growth rate of 96.35% in the last year, showing long-term investment opportunities despite the 2017-18 crypto crash and the 2022 crypto crash.
The first major Bitcoin market crash was due to regulatory concerns, which were reinforced in 2023. Moreover, Bitcoin Exchange Traded Funds or Bitcoin ETF approvals offer investors a more familiar trading platform that allows them to use their existing brokerage accounts.
Leveraged trading on familiar platforms and exchanges allows investors to have more control of the days of trading by understanding their platforms. It has become easier to forecast boom-bust cycles and adjust a portfolio according to investment objectives.
A Bitcoin ETF tracks the crypto coin value on traditional market exchanges rather than a crypto exchange platform, providing peace of mind for investors. The growth potential in traditional markets is easier to track and monitor versus the crypto exchange platform.
Ethereum Market Trend
Ethereum entered the crypto markets in 2015 when Vitalik Buterin and Joe Lubin used blockchain technologies to provide investors with a decentralized platform that used more than cryptocurrency for trading, introducing initial coin offerings (ICOs).
The ICO boom introduced a new era of digital assets that included non-fungible tokens (NFTs) and initial coin offerings (ICOs), with ICOs being a popular method used to raise funds for services and products related to traditional crypto similar to initial public offerings (IPOs).
Some of the biggest ICOs included Ethereum, Chainlink, EOS Network, and Filecoin. The Ethereum price history shows that the value was only $1.84 or €1.69 in September 2015. However, the price rose to $1,273 or €1,168 by December 2018, showing a bull market.
Unfortunately, the price dropped to $123.85 or €113.66 in March 2020 before rising exponentially to $4,672 or €4,287 in December 2021. Market volatility was rife in ICOs and Ethereum. More recent market trends show that the price of Ethereum started at $3,239 or €2,972 in February 2022.
The price dropped to $1,151 or €1,056 in July 2022 and remained in bear markets until around January 2024, when the price rose to $2,619 or €2,403. The highest price in 2024 was in March at $3,915 or €3,592. Ethereum may be secure as a crypto exchange, but the market volatility is high and requires long-term investment.
Donald Trump’s Reinstatement May Provide Concrete Cryptocurrency Investment Opportunities
The Daily Mail suggests that Donald Trump whitewashed Kamala Harris in a landslide victory in the 2024 US Elections. Meanwhile, Reuters hails Trump’s victory as an incredible comeback after a turbulent campaign concludes. Ironically, Trump’s comeback may just be the key to the comeback of cryptocurrency inflations.
CNBC News published an article showing Trump’s crypto plan to make the US the cryptocurrency capital of the planet. Just over a month later, Al Jazeera confirms that Bitcoin nears $90,000 as investors eye the crypto-friendly Trump administration. Bitcoin officially hit the €84,500 marker in Europe, attracting global investors.
In fact, while we were writing this article in November 2024, we saw a surprising all-time-high for Bitcoin at $93,477 reached on November 13.
Cryptocurrency prices soared as Trump’s election results drew investors, knowing the crypto market was about to change for the better. Ether also climbed 9% as soon as Trump was re-elected, standing at $2,650 or €2,490 but climbing to a further $3,343 or €3,140 a week later.
Even Coinbase, a popular crypto wallet, saw stock prices soar 30% in just one week. Not only will Trump’s reinstatement ensure prices skyrocket, but Trump will also likely propose crypto-friendly policies to the federal government to protect crypto investors and developers.
Trump’s coming reinstatement already shows positive results for crypto markets, and the administration’s dedication to transforming the US into the crypto capital of the world ensures that the business mastermind will likely guarantee more protection for investors. Crypto has never been a hotter investment opportunity than now.
Knowing How to Encourage Mainstream Acceptance Before Investing in Crypto Currencies or Technologies
Investing in crypto technologies or currencies can work as long as you know how to convince mainstream retailers, media, and businesses to adopt the technologies. The FinTech Times claims that widespread acceptance is a long way off, but why won't people accept crypto wallets, payments, and digital currencies?
Consider a scenario where a silver-haired man must pay his account at the local grocery store. Will he pull notes out of his physical wallet or download blockchain applications to pay for his groceries? Unfortunately, a survey by Oliver Wyman found that fewer than 1% of individuals would pay for items using crypto.
Germans are even more reluctant to adopt cryptocurrency, but why? The regulatory mess of German crypto regulation has deterred banks from working with crypto. On the other hand, Frankfurt's Bankhaus Scheich was accused of money laundering with Bitcoin.
Trust is a far way off in Germany, and financial institutes, investors, and service providers need to work together to establish the trust necessary to ensure everyone feels secure with the best growth potential, whether in crypto digital transformation or crypto transactions.
Our expert Fintech consultancy services can guide investor and customer acceptance and show businesses how to overcome the challenges facing the adoption of cryptocurrency and blockchain technology in Germany because we understand the market, fears, demands, and regulatory standards. Our teams know how to encourage acceptance.
Summing Up the Crypto Boom or Bust Debate for Better Investments and Business Decisions
Cryptocurrencies and assets have seen booms and busts. However, the main contenders still compete for investor confidence. Besides, crypto can overcome environmental concerns and make businesses more sustainable by eliminating paper money.
Sustainability in employer branding may be the saving grace that allows your businesses or investments to rise above the rest. Bitcoin has long been a preferred choice, with other popular cryptocurrencies and assets following closely.
The crypto-assets market is a new playing field German and EU businesses should adopt, whether developing technology or providing payment services. The largest barrier is widespread acceptance, but there's a way to overcome that obstacle.
Our FinTech consultancy experts can help spread acceptance through structured frameworks and years of local expertise. Our understanding of blockchain regulatory standards and our collaboration with the LegalTech book will ensure seamless transitions.
Contact us today to discuss how your organization can leverage crypto to complete the digital transformation that will set your business apart from the typical market sentiments.
