When analyzing the historical trends of cryptocurrencies, it becomes evident that significant gains often occur about a year and a half after the market bottom, indicating the possibility of a rapid price surge in the coming years.

One year after the collapse of the now-defunct FTX Derivatives exchange and two years since Bitcoin reached its all-time high of $69,044, it is safe to say that the narrative of “Crypto is dead” has been unequivocally debunked.

The Crypto Market Post-FTX Collapse

The collapse of FTX was a pivotal moment for the crypto market, leading to widespread skepticism and predictions of its demise. However, the past year has witnessed a remarkable shift in sentiment. As highlighted in a recent blog post by Coinbase Global Inc, institutional interest in cryptocurrencies has surged, with the filing of Exchange-Traded Funds (ETFs) and increased participation from financial giants.

Furthermore, the user base for crypto assets has grown to an estimated 420 million globally, with 52 million in the United States alone. This growth surpasses the adoption rates of electric vehicles and union memberships, signaling a profound shift in public perception.

Despite the challenges posed by FTX’s collapse, the crypto market has continued to innovate, thanks to a dedicated developer community. Additionally, the technology behind cryptocurrencies, particularly blockchain and Web3 projects, has evolved significantly.

Over half of the Fortune 100 companies have engaged in crypto-related initiatives, recognizing the importance of crypto investment for gaining a competitive advantage. Payment integration with mainstream services like PayPal and Visa has further bridged the gap between crypto and traditional finance.

The regulatory environment for cryptocurrencies has also made substantial progress. Approximately 3% of the G20 and major financial hubs have either passed national crypto legislation or have legislation in progress.

A significant step towards providing a clear regulatory environment is the passing of MiCA, a unified framework for crypto across 27 countries in the European Union. The increasing regulatory clarity has contributed to the legitimacy and acceptance of cryptocurrencies in mainstream financial markets.

Justice for Bad Actors

The past year has witnessed a reckoning for individuals who engaged in unethical practices during the previous bull cycle in the crypto market. Notable figures like Sam Bankman-Fried, Alex Mashinsky, Do Kwon, and Su Zhu are facing the consequences of their actions. Bankman-Fried’s conviction, in particular, serves as a symbolic moment in holding bad actors accountable.

As the crypto industry moves forward, it is crucial to maintain focus on the core principles of decentralization, self-custody, and the power of digital assets like Ethereum and Bitcoin. The industry must remain vigilant against bad actors and uphold the principles of Decentralized Finance (DeFi).

The recent bullish sentiment in the crypto market, fueled by the prospect of regulated ETFs, indicates a promising future. Looking ahead, Bitcoin is projected to enter an “acceleration phase,” with some analysts expecting prices to surpass the previous All-Time High (ATH) record of $69,044 by mid-2024.

Based on the historical trends of cryptocurrencies, it is likely that significant gains will occur about a year and a half after the market bottom, suggesting a potential rapid price surge in the coming years.