All About Crypto Seasonality
The total market capitalization of the top 100 cryptocurrencies has increased over the past seven years from approximately $5.2 billion to over $1 trillion.
The total market capitalization of the top 100 cryptocurrencies has increased over the past seven years from approximately $5.2 billion to over $1 trillion. Currently, investors put their money into cryptocurrencies at a rate that makes them the fourth-most popular investment, following equities, mutual funds, and bonds. The market capitalisation of Bitcoin by itself is sufficient to place it among the top 20 largest corporations in the S&P 500.
Since the cryptocurrency market has captured the attention of the rest of the investing world and eliminated some of the early doubts surrounding its sustainability, we have decided to take a more in-depth look at the factors fueling its incredible growth.
What is Crypto Seasonality?
The concept of crypto seasonality refers to the widespread belief that the price of Bitcoin will rise and decrease over a predetermined period, significantly impacting the cryptocurrency market as a whole. Bitcoin (BTC) was the first cryptocurrency ever created and is the industry’s most valuable digital asset. Because it was the first cryptocurrency, it will always have a significant amount of value attached to it, and all following coins will be connected to it in some way. Bitcoin, on the other hand, is not a stable asset. The value of the first cryptocurrency ever created fluctuates all the time, shifting by thousands of dollars in either direction at any given moment.
It is anticipated that this volatility will reach a high once every four years before plummeting sharply, owing to the halving of the Bitcoin supply. The rewards for mining Bitcoin are halved every four years as part of a process known as "the halving", which is pre-programmed into the blockchain. This ensures that a smaller number of bitcoins are added to circulation with each mined block. The market tends to correct itself after halving the total provision of coins into circulation, with Bitcoin's price rising due to its more scarce nature.
However, the price of Bitcoin tends to crash shortly afterwards as investors cash in their newly earned profits, which causes the market to overcorrect. As the price of bitcoin continues to fall, more investors begin to worry about the security of their holdings. They may sell their Bitcoin to move their money into alternative cryptocurrencies.
Other factors affecting the value of cryptocurrencies:
The node count reveals the number of operational wallets in a given network. It demonstrates to you how resilient the community is. A large node count can demonstrate a robust community, and a strong community increases the likelihood that a particular currency will be able to weather a potential crisis. Second, the number of nodes in a network may be used as an indicator of both the strength and decentralization of the network, which are critical components in crypto.
Another component that affects the value of cryptocurrencies is the cost associated with their creation. Miners utilize specialized hardware or servers daily to produce new tokens and validate new network transactions. This process is known as "mining." Miners are compensated for their efforts with virtual tokens and a portion of the network fee. The network activity of miners makes it possible for cryptocurrencies to continue functioning.
Therefore, an increase in the costs associated with mining may increase the value of the cryptocurrency. It makes no sense for miners to waste their resources mining new cryptocurrency tokens if the rewards are insufficient to cover the expenses and earn them a profit. Miners should not mine new cryptocurrency tokens if the incentives are not large enough. However, this isn't always the case and isn't consistent across different cryptocurrencies, so it's important to do your research before committing to anything.
The availability of a token on most cryptocurrency exchanges will likely increase the number of people purchasing and utilizing that token. If you need two or more exchanges to trade any cryptocurrency token, you will be required to pay a fee for each exchange, which will increase the overall cost of the investment.
Inflation, Tax and Market Trends
Some crypto enthusiasts assume that top cryptocurrencies like Bitcoin, Ethereum, and BNB are less sensitive to the effects of external market variables. However, this may not be the case. During the first two weeks of April 2022, the value of these and other key tokens experienced a steep decline, and the overall cryptocurrency market shed approximately 400 billion dollars worth during that period. To make matters even worse, market analysts believe that a "catastrophe" in the financial markets might cause cryptocurrency values to drop even lower.
Although Bitcoin's price has fluctuated above and below a threshold of $40,000 for the majority of the year 2022, the most recent price drop serves as a reminder to investors that decentralized digital tokens may still react strongly to factors such as inflation, taxes, and the overall performance of the market as a whole. Recent developments give rise to the possibility that the assertion that cryptocurrencies can function independently of the many external market factors may not be accurate. When looking for potential correlations between cryptocurrency performance and other issues, investors should look at things like inflation, the policy of the Federal Reserve, and tax season.
Regulatory tightening and EU MICA - risk or opportunity
In this article, we’ll discuss the upcoming Markets in Crypto Assets (MiCA) bill proposed by the EU Parliament. ...
The 5 Main Types of Crypto Attacks
In this article, we’ll examine the five main types of attacks that target cryptocurrency users.
Crypto Trends in October 2022
It’s October! What's trending in crypto this month?
Crypto Trends in September 2022
It’s September! What's trending in crypto this month?
Bitcoin Showing Signs of Resurgence After Catastrophic Dip: What's Contributed?
The Crypto Winter looms even as Bitcoin’s price shows signs of stabilising and resurging. Read on to discover ...
Tesla Sells Bitcoin Holdings: Will This See the Beginning of a Trend for Other Businesses Who Hold Crypto?
Tesla has sold off 75% of its Bitcoin holdings. Click here to find out why and whether other businesses will be ...
Bitcoin Maximalism: What Is It?
Bitcoin maximalists are receiving more attention in the mainstream media. But what are they? Read on for ...
Getting to Grips with Arbitrage
The world of trading has many different tricks and tools refined over the years by strategists and financiers, ...
The Crypto Winter: Are There Any Advantages?
It seems that another crypto winter is among us, but what does it mean and are there any advantages? Click here ...
The Comparisons Between the 2018 Crypto Bear Market and Now: Are They Useful?
Cryptocurrency is currently heading into another bear market. Click here to find out how noting comparisons can ...
The Blossoming Intersection of Fashion and Crypto: What Does the Future Hold?
Over the last few years, fashion and crypto have been entwined together. Click here to find out what this means ...
Could Post-Merge Ethereum Have a Centralization Problem?
Ethereum recently completed its merge into Ethereum 2.0. Click here to find out if this will bring about a ...
Instagram to Add Support for NFTs
Instagram to launch NFT functionality on its platform in 100 countries worldwide
Can Ethereum’s Ecosystem Keep Its Future Bright Amidst This Crypto Winter?
Ethereum has steadily been building an ecosystem unlike any other. Click here to find out why its future remains ...
Buterin Criticises Bitcoin’s Stock-to-Flow Price Prediction Model – But What Is It?
The stock-to-flow prediction model has caused a mixed reaction amongst the crypto community. Click here to find ...
AVAX, the Ethereum Killer: What You Need to Know
AVAX, which is a token run on the Avalanche blockchain, is said to be the Ethereum killer. Click here to find out ...
A ‘Digital Library of Italian Culture’ in Puglia: Is It Expanding NFT Use to New Areas?
The University Aldo Moro is currently using NFTs as a way to reignite the culture of Puglia. Click here to find ...
Crypto’s Position in the Italian Economy: Will It Only Grow and What Would Regulation Do?
Crypto is continuing to grow in the Italian economy. Click here to find out how and what regulation might mean ...
Will the EU Adopt a Digital Currency?
Cryptocurrency is growing across the world, with more and more countries starting to embrace it. Click here to ...
We are listing Ocean Protocol (OCEAN)
We will soon be listing OCEAN, the native token of the Ocean Protocol project
Our Slovakian license is approved!
The license is another achievement along our path to becoming the most well-regulated exchange in Europe
"Lights, Camera, Trade!" Trading Competition
Get ready for the zondacrypto rebranding trading competition!
Zonda is now zondacrypto
Your favourite crypto exchange is getting a new look and added features!
How is Zonda working during long May weekend?
Please note that during Long May weekend, our customer support team will be available as usual. However, during ...
Important Notice: We are delisting LUNC
To provide the safest trading experience for our customers, we regularly review each token on the exchange to ...
We’ve partnered with crypto tax experts Cryptiony!
Get 20% off when you sign up with our promo code
We are listing Fetch.ai (FET)
We are listing $FET, the token of the Fetch.ai project, on Monday 24 April 2023.
Scheduled Maintenance 17.04.
We will conduct scheduled maintenance from 06:15 to 07:30 (CEST) on 17.04.2023
Ethereum Shapella Network Update
4. 08 Phishing: types and examples
Phishing is a type of fraud that involves impersonating another person or institution in order to extract data ...
4. 07 Investment scams. What to look out for?
Investment fraud is one of the most common recent threats that is oriented towards people who use the services ...
4. 06 Travel Rule
Travel rule is a rule well known from the traditional banking sector, which states that all funds sent from one ...
4.05 Crypto taxation in Poland
Every year in Poland, more and more people are investing in cryptocurrencies. This involves, among other things, ...
4.04 Illegal Activities in Crypto
In this lesson, we explore recent statistics and discover insights about criminal activities related to ...
4.03 DLT Pilot Regime
The Regulation of the European Parliament and of the Council on a pilot regime for market infrastructures based ...
4.02 Digital Operational Resilience Act (DORA)
In this lesson you will learn more about the Digital Operational Resilience Act (DORA), which as a part of ...
4.01 Markets in Crypto Assets (MiCA)
In this lesson you will learn more about MiCA, which aims to be the first comprehensive law regulating ...
3.03 The Dow theory: principles and statements
This lesson helps you understand the principles and statements of Dow’s theory.
3.05 Candlestick charts and patterns
This lesson focuses on understanding candlestick charts and patterns.
Invezz / Interview: Volatility, liquidity and what happens next for crypto – zondacrypto exchange
Anyone who has ventured into the cryptocurrency world will agree with one thing: the volatility is unmatched. Be it plummeting or soaring prices, crypto markets are notorious for the pace at which they move. In this interview, Stanislav Havryliuk, our COO, assesses the current situation on the crypto market.
US regulators are cracking down on stablecoins!
Blockworks spoke to our COO Stanislaw Havryliuk about the recent SEC action against @PaxosGlobal and stablecoin #BUSD
Should we expect to see similar action against #USDT and #USDC? Which #stablecoin is the safest option?
Meet the person that is creating ripples of growth in the crypto space
Our CEO Przemysław Kral is making headlines again!
In this feature from FoxInterviewer, he discusses the skills needed to succeed in the emerging digital assets industry, the importance of KYC and AML procedures, and the tools he is building at Zonda.
Business Insider recently had a chat with our CEO
Zonda’s CEO Przemysław Kral recent spoke to Business Insider about the importance of consumer safety and compliance in the crypto sector.
Read the full article, along with additional commentary from our COO Stanislav Havryliuk
How will the US banking crisis affect crypto? Our CEO spoke to Benzinga
The collapse of Silvergate has sent shockwaves through the crypto industry. Where will US crypto businesses now go for banking services?
Zonda CEO Przemysław Kral recently spoke to @Benzinga about this issue and the problems it could cause.
Zonda is now zondacrypto!
As the exchange continues to evolve and grow, we're thrilled to announce that we're rebranding and changing our name to better reflect our vision and values. We're still the same team you know and trust, but with a fresh new name that captures our spirit of innovation and customer-centric approach.
Some things may look a bit different but don’t worry - all operations remain the same and your login details work as usual.
Stay tuned for more updates and exciting changes as we embark on this new chapter together. Thank you for your continued support and loyalty!