Last chance for bulls to exit the market. FBS explains the next two years for crypto

Last chance for bulls to exit the market. FBS explains the next two years for crypto

2022-11-22 • Updated

Crash of LUNA ecosystem and halving cycles. Glimpse into the future of the crypto market with FBS experts!

LUNA crash is the boost for crypto

You probably heard about the crash of the LUNA coin. It’s one of the biggest crashes in crypto history. In April 2022, LUNA had a market capitalization of $40 billion. Now it’s less than $1 billion. Another member of the LUNA ecosystem, the UST stablecoin pegged to the USD, lost its peg and fell from $1 to $0.01.


This terrifying crash has been discussed earlier, and we won’t bother you with that. Instead, we better focus on the future. Earlier, there were two crushing incidents in crypto history.

In 2014, cryptocurrency exchange Mt. Gox was exploited, and 850 000 Bitcoins were stolen. This created a trend in protection mechanisms for crypto. Later, Coinbase and Kraken exchanges were created. Both are now the biggest exchanges with flawless protection mechanisms.

In 2017, the ICO (initial coin offering) bubble burst, and millions of investors lost their money. ICO was tied up on centralized exchanges. People started to look for other ways of storing their funds. That led to the creation and rise of the decentralized finance (DeFi) sector. Now, DeFi has a $63 billion market capitalization.

Something extraordinary should happen to create something truly unique in the crypto market. LUNA crash may be an awful and crushing experience for the market, but also it can be the start of a new trend. For example, new protection mechanisms, more advanced algorithms of collateralization, or the dawn of stablecoins. At least part of them. Notice that FBS supports USDT, the biggest stablecoin with a long track record. Even during the LUNA crash, USDT mainly remained pegged to the USD, although traders extracted $8 billion. That means a lot to the stability of a coin.

Bitcoin halving cycles importance

Crypto cyclicity started with halving. As you probably know, the reward for mining a block is split in half every four years. What was a 50 BTC reward in 2010 became a 6.25 BTC in 2020. In 2024, the reward will reduce to 3.125, making it even harder for miners to be profitable.

Historically, the halving cycle has comprised a two-year sideways movement ahead of the event, followed by a year-long meteoric run and a 12-month bear market. It has been so for the whole life of Bitcoin. On the figure below you can see each Bitcoin halving.


However, the cycles are becoming less each time due to increasing market capitalization of the crypto market (it’s now harder to push the price higher) and decreasing miners’ influence. Also, this bull cycle took form of a double top pattern, faking the market and pretending to be two bull runs instead of one. Despite this, we assume the cycles will continue to work, not because of miners and halving algorithms but due to the mass adoption that comes to crypto. More institutional investors use Bitcoin as a way to diversify their portfolios. Countries are working on a legislative regulation for crypto; some even started to use Bitcoin as the main currency.

By the way, FBS has a crypto account with over 100 different pairs. Spreads are tight, and trades are fulfilled instantly. You should definitely try a demo account that allows you to master your skills.

Crypto whales (the power-holders of the cryptocurrency market who can have a large amount of crypto) are stepping it up. Companies like Coinbase, Binance, and Gemini use their crypto accounts to manipulate the market. And just like with other financial markets, they will move crypto up and down for another year or two, collecting liquidity for another massive bull run. Halving of 2024 will press on miners, forcing them into selling crypto to stay afloat. That’s where the next rally will start.

To sum up, the crypto market has a lot to lose now. The next halving will be in 2024, so we have plenty of time to prepare. The following year in crypto will surely be bearish. There will be ups, but the trend is looking down, so there is a plenty of time for sellers to enjoy. The trend is your friend and with the information given above you probably know what to do. Stay tuned and trade with FBS!



XAUUSD: Will Gold Continue to Rally?
XAUUSD: Will Gold Continue to Rally?

Last week I gave a trade idea on XAUUSD with a target around the $2,020 price line. At the time of writing, XAUUSD already exceeded the target and I’m sure that would leave a lot of people wondering what to expect next. Below, I have presented my view of how I expect the price action to turn out in the meantime.

AUD: Trade Ideas
AUD: Trade Ideas

Last Tuesday, the Australian dollar experienced its steepest drop of the year, falling by 1.18%, following higher-than-expected US inflation figures, which boosted the US dollar. However, the Aussie has since rebounded and is now trading at a two-week high against the US dollar. Investors are...

NZD: The Week Ahead
NZD: The Week Ahead

Commerzbank's analysis suggests a brighter outlook for the New Zealand Dollar (NZD) in the coming months despite recent downward pressure. Factors like broader U.S. Dollar strength and domestic issues have kept the NZD below last year's highs. However, robust labor markets in both New Zealand and Australia and an expected...

Latest news

XAUUSD: Bears Prepare To Takeover
XAUUSD: Bears Prepare To Takeover

On Friday, the gold price (XAUUSD) retreated from a recent two-week high, facing selling pressure. This decline was driven by hawkish minutes from the FOMC meeting, indicating the Fed's reluctance to cut interest rates. Elevated US Treasury bond yields, supported by a "higher-for-longer" narrative, further weakened demand for gold...

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera