Will cryptocurrency soar, plummet, or tease investors along an unpredictable path for the foreseeable future? Will Bitcoin Come Back in 2023? Will regulation play a more significant role? Which type of cryptocurrency will be the best bet this coming year? There are as many predictions as analysts are charting the future of cryptocurrency.
Based on data from CoinMarketCap.com, the aggregate value of more than 22,100 digital currencies has tumbled from nearly $3 trillion in November 2021 to less than $795 billion as of early morning Dec. 29, 2022. That's about a 74% drawdown in less than 14 months.
But given the well-known volatility always present in the crypto space, not even a 74% decline in a short time frame is enough to sway the resolve of digital currency enthusiasts.
The big question is: What happens next for cryptocurrencies in 2023? Here are some interesting predictions on crypto-currencies to watch in 2023.
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Crypto Prediction #1: Past Performance of the Crypto Market Suggests 2023 Will Be a Good Year.
The crypto market has been on a roller coaster in the past few years, with prices rising and falling quickly. Despite the volatility, however, it is undeniable that the crypto industry has shown tremendous growth in the past few years. Industry professionals are optimistic that this trend will continue into 2023, as past performance of crypto markets suggests that this will be a good year for virtual currencies. This bodes well for investors who have already been involved in the crypto markets and those who are just getting started.
Analysts and market researchers have studied the performance of the cryptocurrency market since its inception and have concluded that the market is showing steady growth. This continued growth has led many to anticipate that 2023 will be a good year for the crypto industry as confidence in the technology increases and more businesses decide to adopt it. As more companies adopt blockchain technology, the need for skilled professionals to work in the sector will increase. This will create more job opportunities, which could foster further industry growth.
Crypto Prediction #2: The Bear Market Will Be Over in the second half of 2023
After a prolonged bear market in 2020, analysts and investors are optimistic that the crypto markets will rally in 2023. This positive outlook has been bolstered by the fact that the industry has managed to weather the storm and show signs of recovery even in difficult times. As such, investors and traders can look forward to improved performance in the coming year, which could lead to higher returns and increased liquidity. Moreover, more businesses will likely join the crypto ecosystem in 2023, driving the adoption of virtual currencies and blockchain technology even further.
Once the Crypto Market Is at the Bottom, a Bull Market Will Happen.
A bottom in the crypto market is expected to be followed by a bull market as investors and traders take advantage of a potentially lower-risk opportunity. This could result in a surge in profits and liquidity, further strengthening the industry. Additionally, new entrants may be drawn to the space with the assurance of increased liquidity, potentially leading to more businesses joining the crypto ecosystem. Equally important is the fact that consumer confidence in digital currencies and blockchain technology could grow due to the improved performance of the markets, leading to more people using virtual coins on a day-to-day basis.
Crypto Prediction #3: Bitcoin will recover in 2023.
Bitcoin has been on a roller coaster ride since its launch in 2009. After a meteoric rise in the past decade, many industry experts have questioned whether it could lead to the next crypto bull market. Bitcoin has a strong network effect, and many investors are bullish on its future. It has a finite supply, which can reduce volatility and guard against inflation. However, it is impossible to predict the future of the crypto market with absolute certainty, but it is reasonable to assume that Bitcoin will come back in 2023. Blockchain technology will likely be further enhanced during this time, improving scalability and transaction speeds. This would likely lead to a resurgence in investor confidence and enable the market to regain momentum and reach new highs. Furthermore, the emergence of new technologies, such as Decentralized Finance (Defi), could catalyze Bitcoin's recovery, making the asset even more attractive to investors and traders.
Crypto Prediction #4: Moving Toward Decentralized Finance (DeFi).
Emerging crypto developments such as decentralized finance (DeFi) and decentralized autonomous organizations (DAOs) are “likely to be the highest growth areas of crypto,” believes Bryan Gross, network steward at crypto platform ICHI. DeFi aims to recreate traditional financial products without middlemen, while DAOs could be considered a new internet community. Deposits into DeFi services surpassed $200 billion in 2021, and demand is expected to grow in 2023.
CNBC reported that DeFi is part of a broader trend called Web3. Supporters of Web3 assert that online platforms are under the control of a few companies, such as Amazon, Apple, Alphabet, and Facebook’s parent company Meta. Web3 calls for a new, decentralized iteration of the internet incorporating blockchain and non-fungible tokens.
Either way, the world of crypto-currencies is going to change greatly in 2023 and DeFi will be one of the major players contributing to that change. That's why we've created this “Mastering DeFi” course to help you prepare to make the most of the opportunities that will arise in 2023.
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Now, Crypto Prediction #5: The two most-popular meme coins will lose another 50% of their value.
Pardon the blatant pun, but on the other side of the coin, we're liable to see the so-called "meme tokens" get blasted once again. Specifically, We are talking about Shiba Inu and Dogecoin.
At one point in 2021, Shiba Inu and Dogecoin were the hottest coins in the crypto space. Dogecoin gained well more than 20,000% in six months leading up to Elon Musk's appearance on Saturday Night Live as the "Dogefather." Meanwhile, Shiba Inu produced a once-in-a-lifetime gain of more than 121,000,000% between the stroke of midnight on Jan. 1, 2021, and its all-time high set on Oct. 27, 2021.
However, both meme coins have lost in the neighborhood of 90% since hitting their respective peaks. That's a trend we expect to extend into 2023 for a few reasons.
To begin with, Shiba Inu and Dogecoin are nothing more than payment coins -- and there's nothing special about payment coins. Thousands of digital currencies can be used to pay for goods and services, assuming merchants would allow for that. More importantly, neither Shiba Inu nor Dogecoin offers anything resembling competitive advantages or differentiation. While they may have a powerful social media presence, there's nothing tangible to allow these tokens to stand out against other projects that offer real-world utility.
Additionally, history has been incredibly unkind to payment coins that skyrocket over a short time frame. Except Bitcoin, pretty much every payment coin that gained 20,000% or more in a short span went on to retrace between 93% and 99%. Without anything to help SHIB and DOGE stand out, both look destined to lose 50% or more of their value in 2023.
Of course, all these are just predictions. So, the inverse may well happen.
But, do you think these predictions can come true? As always, share your thoughts and opinions with us in the comments section below.
And if you have more questions, leave them in the comment section below and we will come back with another video. We hope we were able to provide some value, and helped you to move a step ahead in your crypto journey. Be sure to check out our Crypto Brand called Cryptopreneur. and get yourself the highest quality Crypto Merch available right now on the market, and make sure to subscribe, so that you don't miss out on any of our content. Till next time, Goodbye.