Cryptocurrency in 2023: Market Predictions and What the Year Looks Like for Digital Assets
The last quarter of 2022 may have been through a crypto winter, and after facing an extremely bearish situation and witnessing the several downfalls such as the collapse of FTX exchange, the good news is that the cryptocurrency market will recover from a major decline in the year 2023.
- Several experts and analysts have stated that the market will continue to recover, making it an ideal year for cryptocurrency investments to peak.
- The Bitcoin halving event, which will take place in 2024, is generally viewed as positive for the cryptocurrency’s price, as halving helps in contracting supply.
- Regulatory bodies worldwide will likely provide greater clarity on regulations, as well as guide people on how these digital assets should be treated.
- Analysts state that emerging crypto developments such as Decentralized Finance (DeFi), and Decentralized Organizations (DAOs) are areas that expect to see high growth in the crypto industry.
- Web3 and the decentralization of the crypto market will help enable users to trade much faster, without the involvement of any intermediaries.
A Snapshot of Cryptocurrency In 2023
Predictions for cryptocurrency have been pouring in ever since the year has started, and we are glad to see more positives and optimism in-stored for the industry. Several experts and analysts have stated that the market will continue to recover, making it an ideal year for cryptocurrency investments to peak.
We’ve rounded up top five predictions from experts on what 2023 will look like for cryptocurrency:
- Bitcoin Reaching a High and Ending the Bear Market
Towards the end of December 2022, experts had predicted an end of the bear market seeing a rise in Bitcoin after it hit rock bottom in the previous year. And as of today, we are witnessing that happen. In January 2023 itself, the price of the world’s largest digital token rose up roughly 28%, up to $21,000 per coin for the first time since November 7, 2022.
Analysts also stated that there are a number of factors behind Bitcoin’s New Year rise, including an increased probability of interest rates being lowered, as well as purchases by large buyers known as “whales”.
- Ethereum Surpassing Bitcoin in Market Value
Even though 2023 started off with good news for Bitcoin, predictions state that the rise of the cryptocurrency won’t stay for too long this particular year. One of the main reasons for this to happen is that next year, in 2024, Bitcoin will go through its halving event.
This event takes place every four years in which Bitcoin rewards to its miners are cut in half, meaning the miner’s payout will be reduced to 3.125 BTC. Bitcoin halving event is generally viewed as positive for the cryptocurrency’s price, as halving helps in contracting supply.
If we take a look at the history, halving has always been an excellent sign for bringing momentum in Bitcoin’s price, persuading the market to hold on to their Bitcoin and get bullish.
Because of the fall that Bitcoin might soon face this year, it has been predicted that Etherum will surpass Bitcoin in market value as the two tend to be correlated. History shows us that one of either rises or falls, the other follows.
Ether outperformed Bitcoin in 2021, gaining 418% compared to 66% for Bitcoin. Analysts believe either will continue to do well because of the surge in NFT sales volumes.
- More Regulatory Clarity
As the cryptocurrency industry continues to grow and mature, experts state that regulatory bodies worldwide will likely provide greater clarity on regulations, as well as guide people on how these digital assets should be treated.
It’s like opening up the door of trust. More clarity and need of regulations in the world of crypto will help build confidence and trust in the market leading to greater adoption of cryptocurrency as a whole.
- A Giant Leap Towards DeFi
Analysts state that emerging crypto developments such as Decentralized Finance (DeFi), and Decentralized Organizations (DAOs) are areas that expect to see high growth in the crypto industry.
In a nutshell, DeFi aims to recreate traditional financial products without the interference of any third-party intermediary, while DAOs could be considered a new internet community.
For 2023, predictions state that investors will begin to realize the distinction between DeFi and its traditional, centralized counterpart. One of the most distinctive and beneficial factors remains the relative ease with which claims have been refunded through DeFi protocols.
- Rise in Web3 Platforms in The Next Digital Age
2023 will be a year that will see much more of the innovative technology that may trigger a bigger bull run next year. Web3 and the decentralization of the crypto market will help enable users to trade much faster, without the involvement of any intermediaries. Experts also suggest that it would be a clever idea to start investing in projects involving Web3 while they are still maturing at pace.
This also gives a silver lining to the future of NFTs, which currently is going through a significant transition phase that has relatively slowed down investments. But with digital artists and major brands promoting and leveraging the inherent transparency and accessibility, experts believe that 2023 will see NFTs as a building block to create a stronger foundation for Web3 to be built upon.
Now that we’ve taken a look at the top cryptocurrency predictions, we certainly believe that one thing is for sure — 2023 will be a good year for cryptocurrency as there is a lot of optimism and a variety of new, innovative trends to follow.
The cryptocurrency winter is at the edge of ending, and now is a good time for investors to think carefully and start planning beforehand. Once again, we remind everyone that before investing in any crypto project, it is best to do your own research, or DYOR, and think wisely.
When the market turns bearish, it is best to hold on to your digital assets and wait for the market to turn bullish.
How can you do that? Simple — by storing all your digital assets in a digital wallet that serves as a digital safe box.
Click here to know more about how to open a crypto wallet.
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