Will cryptocurrency rise, fall, or continue teasing investors along an unpredictable future? How is Bitcoin (BTC) going to tackle volatility? Which type of cryptocurrency will I buy in the coming year? Should cryptocurrencies be regulated for a more significant role?
These are some of the questions that might be popping up in your mind right now considering the current situation of the crypto market. There are as many predictions as there are analysts who are busy charting the future of cryptocurrency.
Predicting the future of cryptocurrency, if the past is any indication, you can expect to be on a roller coaster in 2023. In this blog, we will cover some of the top predictions about cryptocurrencies to help you better understand the crypto market this year.
Prediction #1 – 2023 Will Be a Good Year
Cryptocurrencies have come a long way, but they continue to be volatile currencies. Despite the volatility, you cannot deny that the crypto market has recorded exceptional growth in the past few years.
Bitcoin has become the world’s largest cryptocurrency by market capitalization, thanks to its positive adoption and profitability. In addition, altcoins such as Ethereum (ETH), Binance Coin (BNB), and more have also made positive headlines.
Industry professionals are optimistic about cryptocurrencies in 2023. The history of the crypto market predicts that this will be a great year for digital currencies after the bearish run which took place in 2022 will be over.
According to analysts, the crypto market is already showing steady growth which has led many to anticipate that more businesses will adopt cryptocurrency this year. As crypto adoption is expected to increase, more skilled blockchain professionals will be hired which could foster further industry growth.
Prediction #2 – End of the Bear Market in 2023
2022 was not a remarkable year for the crypto business since many digital currencies lost value because of a bearish run. The crypto market is still suffering from the prolonged bearish run which took place throughout the last year.
But analysts and investors are optimistic that 2023 will be a great year for cryptocurrencies. The positive outlook of the market is bolstered by the fact that it is already showing signs of recovery.
Carl Runefelt, alias, The Moon, is a global crypto leader who believes crypto investors should be very careful with their investments.
He emphasizes, “Bitcoin is a game of patience. You cannot look at the daily chart and put too much significance on it. Holding long-term will make you money in Bitcoin and crypto in general. If you look at the day-to-day or minute-to-minute, it can look very volatile; you see 50 jumps and then 60 dumps. People get fearful and panic, but always remember if you zoom out on the Bitcoin, you will always see a bull trend on Bitcoin.”
As such, crypto investors can look forward to higher returns and better performance of cryptocurrencies this year. Moreover, it is expected that more businesses will become part of the crypto ecosystem in 2023, driving the adoption of digital currencies.
Prediction #3 – a Bull Market is on Horizon
Cryptocurrencies are unregulated or decentralized currencies which means neither a bank nor any government institution can interfere with their proceedings. The unregulated nature of cryptocurrencies makes them volatile investments.
A bearish or bullish run can take place in the crypto market at any time. But a bottom run or bearish run is always followed by a bull market.
Crypto analysts expect that a bullish run in the crypto market will take place this year and you should take advantage when cryptocurrencies are still affordable. This could result in profits for crypto investors once the bull run takes place.
It is also expected that new entrants could be drawn to the space with the assurance of better liquidity. This will lead to more businesses joining the crypto ecosystem and more opportunities for people.
Equally important is the fact that this will boost the confidence of consumers in virtual currencies. Blockchain technology could grow based on improved market performance, leading to the mass adoption of cryptocurrencies.
Predicting the exact future of cryptocurrencies is unreasonable because they are decentralized currencies with zero regulations.
But 2023 is expected to be a great year for the crypto market as it has already started to show positive signs.
You should pick your cryptocurrencies right now when they are affordable to make handsome profits in the near future.