The crypto market just got disrupted

As the year 2021 came to a close, most people had mentally bid farewell to having a string of green candles as it was thought to be the end of what was a bull year. This was usually heralded by a period characterised mostly by the bear market in the following year(s). This had been the market cycle in previous years and any major deviation from this regime wasn't expected. On the basis of this presumption, what most had expected to witness were short periods of green every now and then. Indeed some had written off 2022 as bear market year with no prospect of significant positive price action.

In fact many had opted to move their portfolios to assets which could be staked such that even if the streets of crypto town were bathed in blood, some gains could still be made from staking rewards. Some others had opted to move a large portion of their portfolio to stable coins as a countermeasure to the effects of a bear market.

However what we're currently experiencing as the first quarter of what was supposed to be a bear market year winds down is somewhat unexpected. Indeed many were taken by surprise when the bulls broke free and took the bears unawares forcing them to make a retreat. Who would have imagined BTC making another dash towards 50K USD and possibly higher in what had been written off as a year that would be within the tight grip of the bears.

Several reasons have been put forth by analysts within the crypto space as to why the bulls have managed to take the centre stage. Of all these reasons I tend to align with the opinion that there has been a disruption to the usual model which determines how the market forces play out.

Development takin place in the crypto space presently is a at a pace which has never been seen before. Several new utilities and products are being introduced which are adding immense value to the crypto space as well as promoting more mass adoption.

The surge of interest in Non fungituble tokens (NFTs), rolling out of Web 3 and the MetaVerse are the prominent actors leading this disruption which is altering the market cycle. It is only a matter of type before yet another innovation in the crypto space alters how we relate with everyday concepts such as the way NFTs altered how we relate with art especially in its digital form.

And this is just the beginning as crypto currencies are taking the globe like a storm with governments beginning to realise that crypto currencies and indeed the block chain have come to stay. The forward thinking governments are looking ways to integrate crypto currencies into their financial systems so that they can also reap from it benefits.

We are indeed in uncharted waters with the current situation of the market and anything can happen within the twinkle of an eye. Hence the need to adopt appropriate risk management techniques even though the bears seem to have been put in chains. They could well be in the process of planning a counter offensive in order to retake the market when we least expect it.