Barely a year ago, you could not watch an online video without a crypto advertisement popping up in between. Such ads convince people that they can get rich, or at least feel so.
More and more people started investing in digital assets and realized that the market is highly unpredictable.
Despite the volatility and insanely fluctuating rates, some lucky peeps were able to trade bitcoins for $50,000 on average.
Analysts that started tracking the performance of the crypto market upon its inception are still following crypto exchange news because the research does not seem to end.
So, what twists and trends should we expect for our digital assets this year?
5 Things to Expect from the Crypto Market This Year
Crypto traders lived their worst nightmares after the decline in the market, especially the collapse of FTX at the end of last year.
Crypto exchange news did not bring high hopes for them, even at the beginning of 2023. The dawn of 2023 was not quite smooth for the crypto market because several decentralized and centralized entities had a turbulent run the previous year.
Here are five foreseeable things in the world of crypto for the year 2023:
· The Contagion Persists
Not to be the bearer of bad news, but the pain is still nowhere close to fading.
Crypto funds will continue to recede through the first half of this year—it only makes sense. Companies, banks, and fund managers are desperately waiting for things to move past recent blows because no one wants to catch a falling knife.
From the beginning of 2023, new settlements, interoperability, lending, and trading protocols have continued trying to make up for the contagion resulting from the previous attacks, treasury shortfalls, regulatory changes, and market crashes.
However, the vacuum is too vast to quantify that quickly, so we might see the faltering of companies that no one suspects.
· Recovery of Bitcoin
Blockchain technology is expected to improve scalability and transaction speeds during this time. Consequently, investor confidence will resurge and the market will regain momentum.
Hence, it is a reasonable assumption that Bitcoin is highly likely to make its way back in 2023.
The emergence of technologies like decentralized finance (DeFi) will also establish Bitcoin as a hot favorite among investors and traders, thus catalyzing its uprising by folds.
The increased adoption of Bitcoin by entrepreneurs and leaders globally will be the highlight of this year.
· Ethereum Looks Promising
Around mid-2023, Ethereum might become a more valuable and globally attractive asset because of its security. People will widely accept it as a safe asset and confide in Ethereum due to its regulatory clarity, which will enhance even more this year.
Ethereum is still in the early stages, but, being a well-defined regulatory framework, we cannot underestimate its potential. No wonder, its popularity has only grown since 2019, positioning it second to Bitcoin in popularity.
With the increase in demand, its developers are working on enhancing its scalability and transaction speeds. It would be significantly crucial for the level of trust people put in this project.
· Culture Wars Will Haunt Investors and Traders
If you expect the culture wars within the crypto market to cool down, we find it necessary to burst your bubble because they might heat up further by the end of 2023.
Booms, busts, accidental hacks, over-aggressive risk exposure, and outright fraud will not vanish this year too.
Several government regulations with a strong stance on crypto will emerge, but the focus of most of the action will be patchwork, so risky projects might still slip through the cracks.
The tumultuous crypto market will lead traders to look for a potentially lower-risk opportunity in the bull market.
· Web3 Will Be the New Cool
Crypto exchange news has it that Web3 adoption will significantly be in fashion this year.
Web3 uses blockchain technology to let its users store, access, and manage their assets freely and securely. It is innovative enough to bring the power of decentralization to data and has the potential to revolutionize how we visualize data and the internet.
Here’s the Bottom-Line
Even the crystal balls cannot tell what is ultimately going to happen. Predictions are equally likely to be right and wrong because trends change on a dime. Then again, the uncertainties of the future are not always scary as they might just be shadowing the silver linings beneath them; the more quickly one adapts to them, the closer one stands to benefit.
If the past is any indication, the future of cryptocurrency will be a roller coaster of its kind, with prices rising and falling quickly. Market experts are hopeful that crypto will continue to grow and that the coming days are bright days for virtual currencies.