Home CryptoBitcoin Crypto Market is Booming

The market share growth by the bitcoin segment will be significant for overall market growth during the forecast period. Bitcoin, which is known to 95% of cryptocurrency owners and prospects, has the largest market capitalization, more than double that of its closest competitor, Ethereum. Furthermore, Tether, USD Coin, Binance USD, and DAI are his four cryptocurrencies in the top 20 pegged directly to the value of the US dollar. About 8% of people in the US trade cryptocurrencies. This is created, stored, processed, and shared using a decentralized system called a blockchain. Hence, given the high popularity of Bitcoin, the global cryptocurrency market is expected to witness significant growth during the forecast period. 

 The global cryptocurrency market size is estimated to grow by USD 1,815.78 million from 2022 to 2027, according to Technavio. The market is estimated to grow at a CAGR of 15.81% during the forecast period. North America is estimated to account for 48% of the global market growth during the forecast period. The rising demand for digital payments boosted the growth of the North American cryptocurrency market in 2022. The US is one of the top countries and is considered to be at the forefront of technological progress in digital currencies. Owing to the presence of multiple market players and new innovations in the region, North America holds the largest share of the cryptocurrency market. Hence, such factors drive regional growth during the forecast period.

Key factors driving market growth

  • Rising investment in digital assets is one of the major drivers for the cryptocurrency market’s growth. Cryptocurrencies are becoming more popular in the global market for digital assets. This is because digital assets allow rapid transfer of ownership without the need for paper copies of documents. For instance, a digital asset owner can quickly transfer ownership to a new owner or purchaser when the asset is purchased through NFT.
  • Additionally, since many people interact with digital assets every day, from investing in crypto as a digital asset to digitizing existing investment assets, digital assets become integrated into the existing network of traditional financial markets. Hence, such factors drive market growth for cryptocurrency during the forecast period.

Leading trends influencing the market 

  • The rising inclination for digital currency is one of the major cryptocurrency market trends that propel the market growth. Digital currencies offer the potential for faster and cheaper bank transfers, accelerating e-commerce, increasing the number of financial transactions in low-income countries, and increasing international money transfers. Thus it has the potential to change the world.
  • Furthermore, no interbank payments are required as the system exchanges digital currencies instead of bank deposits like cash. Hence, such trends drive the market growth of cryptocurrency during the forecast period.

Major challenges hindering the market growth

  • Volatility in the value of cryptocurrency is one of the major challenges limiting the cryptocurrency market’s growth. The value of cryptocurrencies is highly volatile, and therefore, low-risk investors do not include cryptocurrencies in their financial portfolios. The volatility in value is large because cryptocurrencies are being held by a limited number of people who buy and sell in bulk on trading platforms and exchanges.
  • For instance, in June 2022, Bitcoin lost more than 10% of its value in one day, which is a significant drop from November 2021 when Bitcoin was worth USD 69,000 per token. Furthermore, the lack of transaction charges, position charges, trade posting fees, and regulations on trading platforms also causes volatility in the value of cryptocurrency. Hence, such challenges impede market growth during the forecast period.

Shayne Heffernan

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