Cryptocurrencies in 2023: 4 predictions for this new year
2022 has ended, a very challenging period for the crypto market. As we mentioned to you in TruBit's 2022 year in review, scandals such as the fall of LUNA and the collapse of FTX affected the price of the most important coins, entering the so-called 'bear market'. What's in store for cryptocurrencies in 2023?
Far from the fall in the prices of most cryptocurrencies, the turbulence in the market has caused recent and new users to lose confidence in this type of assets, so that cryptocurrency exchanges, wallets and companies focused on the crypto world entered into crisis processes, causing new rounds of investment, business reconfigurations and layoffs within their staffs.
What will be the future of cryptocurrencies in 2023? It is very difficult to 'guess' how the digital assets market will be, but some experts and analysts have shown their predictions about the 2023 market. Here are 4 of them.
Prediction 1: Cryptocurrencies in 2023, the year of regulation
2022 was full of scandals concerning the world of cryptocurrencies. But, the collapse and bankruptcy of FTX, the second largest exchange in the world, alerted several international organizations, as it has cost tens of billions of dollars to people around the world.
Thanks to this, 2023 is expected to be the year of regulation of Bitcoin and other cryptocurrencies. This is due to the fact that the scandals of 2022 have made the main regulatory bodies try to see what is going on.
In addition, experts mention that the possible regulation of cryptocurrencies in 2023 is mainly due to the establishment of CBDCs or Central Banks' digital currencies.
Europe has been the closest to the regulation of cryptocurrencies. If nothing extraordinary happens, it is expected that by the end of 2023, the European Union will enact the MiCa (Markets in Crypto Assets) Act. This Act seeks to protect users from market manipulation and the 'dark side of the crypto world', attempting to regulate transactions with actions that will attempt to end anonymity in cryptoasset transfers.
Since 2016 there have been attempts to regulate the use of cryptocurrencies, but for some reason these attempts have failed. We will see if 2023 will finally be the year of regulation of financial assets, something the exchanges have been asking for to give more legitimacy to business.
Prediction 2: What will the price of Bitcoin be in 2023?
One of the cryptocurrencies in 2023 that will be the most talked about is Bitcoin. It is the most known and followed project worldwide, which is why it is the first crypto to be analyzed in the financial markets. When the crypto-winter period arrived, Bitcoin went from 67,000 USD to 17,000 USD in just 13 months.
Such volatile behavior in the Bitcoin price makes analysts focus their predictions there. The specialized website criptonoticias has compiled 3 predictions that we summarize below:
- Positive prediction: various analysts and expert traders, such as Cheds or Michael van de Poppe, have mentioned that Bitcoin will have a recovery throughout this year, even predicting that the currency would aim at 50,000 USD by mid-2023.
- Intermediate prediction: price models, such as Stock-to-Flow or that of analyst PlanB suggest that Bitcoin may recover some of its value, reaching 30,000, with a view to an explosion in 2024.
- Negative prediction: Standard Chartered Bank, in its annual report about cryptocurrencies in 2023, predicts that Bitcoin will have a last (but big) drop at the beginning of the year, reaching values similar to those of March 2020, at around 5,000 USD. But, from here Bitcoin will start to rise in price regularly to reach a new big explosion in 2024.
It is important to monitor the price of Bitcoin, as the future of cryptocurrencies in 2023 depends on this. What is important is that several analysts and experts agree that Bitcoin will have a recovery in the short to medium term.
Prediction 3: the end of cryptowinter
2022 was a difficult year for digital markets, something that made predictions about cryptocurrencies in 2023 somewhat complicated for analysts. What will happen with the cryptowinter? The specialized economic magazine Expansión mentions that it will soon be the end of cryptowinter.
Expansión has gathered opinions from experts on the subject, and they all agree that the Cryptowinter will have its end in 2023, although in reality there is no exact period of the entry of the new crypto spring. The idea is that the last consequences of the winter of 2022 will be experienced at the beginning of the new year, but after that, a period of calm and stability will begin, the calm after the storm.
This stability may not bring significant increases in cryptocurrency prices in 2023 as previously thought, but it will allow for increased confidence among users and investments in most of the world's digital currencies will begin to increase.
Criptonoticias has also given some important signs to think that the bear market and crypto winter is coming to an end. One of them is that Bitcoin has reached its all-time high, with growth rates exceeding 0.1 BTC; that is, in other words, more and more people are holding Bitcoin and other cryptocurrencies.
Prediction 4: the explosion of the NFT and Metaverse market.
The Bloomberg website has mentioned among its financial predictions the 'real' explosion of the NFT and Metaverse market. Following the FTX bust, NFTs recorded a drop in trading, ending a 16-month bullish streak.
The reason for the fall of NFTs is due to the distrust in digital markets, but according to Bloomberg experts, it is almost impossible for NFTs and Metaversos to enter a winter period as well, since they are a good alternative for those who distrust traditional investments.
For such reason, one of the predictions is that NFTs and Metaverses will have an explosion in their markets, being one of the fundamental pillars of digital investments. If cryptocurrencies in 2023 fail to enter a bullish period, NFTs and Metaverses may become the first investment alternative for anyone new to this digital world.
New Year is a time for reflection and thinking about what to expect over the next 365 days. The outlook for cryptocurrencies in 2023 looks encouraging, assuming we come from a rather prolonged and difficult winter for digital assets.
These 4 predictions about cryptocurrencies in 2023 show several positive scenarios about digital currencies, although as we mentioned at the beginning: it is always difficult to see the future, especially in a market as volatile as ours. Of course, this year will surprise us, and TruBit will be there to share those moments.