Last year’s black-swan activities still affect the crypto market. Black-swan events are unusual, unpredictable, and severe. The 2017 China Bitcoin ban, 2014 Mt. Gox breach, and 2020 COVID-19 pandemic are examples of cryptocurrency industry black-swan incidents. Crypto institutions failed last year. The crypto market doubted Silvergate Bank this year.

Diversifying investments can prepare organizations and individuals for black-swan events, which cannot be predicted. Risk management and market updates help them do this. Bitcoin’s price plummeted. Global markets plummeting due to the above factors caused it. It recovered by year’s end. Institutional investors and the growing legitimacy of cryptocurrencies contributed to this.

Decentralized finance (DeFi) also expanded. At press time, these platforms were worth nearly $47 billion, up from less than $1 billion in June 2020. Several high-profile breaches and exploits exposed these systems’ vulnerabilities, making this growth risky. Institutional money flowed into cryptocurrencies and DeFi.

S&P Global Market Intelligence released a report on the investments: The crypto market is volatile and susceptible to black-swan incidents. Crypto institutions are hopeful about the market’s revival despite near-term turbulence. Salama Belghali, BitMEX Global Head of Business Development and Partnerships, comments. Belghali’s exclusive BeInCrypto interview was intriguing.

“One of the encouraging signals we have noticed is that demand from global institutions has not gone down throughout the market shakeup,” she said when questioned about the troubled market. Asia’s crypto-friendly development potential is similar. Trading on BitMEX shows confidence is rising. We expect a bull market with many blockchain initiatives sprouting again with the Ethereum Shanghai upgrade.

Global institutions remain interested in cryptocurrencies despite market volatility. Banks, hedge funds, and asset managers are investing in or offering cryptocurrency services to their clients. Goldman Sachs, JPMorgan, and Morgan Stanley provide Bitcoin futures contracts and exchange-traded funds to their clients (ETFs). BlackRock and Fidelity are also researching bitcoin investments.

Some central banks have also considered creating digital currencies. Cryptocurrencies are gaining institutional recognition. Despite the market crash, companies like BitMEX are developing. The crypto exchange, which claims no FTX or Alameda exposure, developed a trader token (BMEX). Notwithstanding market turbulence after Sam Bankman-FTX Fried’s collapse.

The token had a wild start. BMEX lost 78% in the past year. In 2023, it rose 16% in 45 days. 418th-ranked tokens sell around $0.53. The team saw a bright future for the token despite major price corrections. The team’s strategies reflect this despite a slow start to 2023.

The executive also believes blockchain technology can help the crypto sector. She claimed that blockchain technology’s accessibility and transparency may improve traditional industries’ productivity.

Belghali told BeInCrypto, “For instance, we have witnessed a spike in adoption in areas like transportation, healthcare, retail, and even education. When technology leaders invent new products that change how we think, work, and trade, its potential is infinite. We expect additional blockchain use cases.”

Institutional adoption will be important too. One River Digital Asset Management CEO Eric Peters predicts a compelling institutional adoption-driven crypto bull run. The executive thinks a bull run has started despite current negatives. Crypto will fall and climb. Samuel Beckett famously said, “Ever tried.” Fail. Whatever. Retry. Again. Fail better.”

Bitcoin and Ethereum have been around for almost a decade, but the sector is still young and evolving.