So far, the cryptocurrency market has had a tumultuous year. A lot has happened in the past few months, including massive altcoin halvings and crypto exchange bankruptcies.
There has been speculation about the future of cryptocurrencies in 2023 and whether it will be bullish or bearish.
Analysts believe the cryptocurrency market will recover in 2023. However, a complete bull market due to Bitcoin price history is is not guaranteed.
Some believe that the bottom will be reached in the first quarter of 2023, with Bitcoin below $10,000. These price drops could see most altcoins drop by 60% to 80%.
Cardano prices could drop to around 10 cents. This could be an opportunity for those looking to buy, or it could be a signal that its reputation as an Ethereum killer is over.
Beware of Q1
Forecasts show that the Federal Reserve will end rate hikes in the first quarter of next year. This will prevent the cryptocurrency bear market from crashing further. BTC could bottom around $10,000 or below. The stock market, which is highly correlated with the cryptocurrency market, is expected to drop another 20-30% before bottoming out.
However, Bitcoin can experience a flash crash below $10,000. Many factors can cause this, such as lack of energy, bans on bitcoin mining, and lack of liquidity. I’m here.
As the market grows, the phrase “not your key, not your coin” becomes more appropriate.
It’s entirely possible that the SEC will crack down on another big crypto project, company, or exchange in 2023. This is due to the negative events of the year and the ongoing impact of his FTX. Since Solana’s price has plummeted, the project is moving to Polygon instead.
Gensler Is Coming: A New Crypto Company
Either way, another crackdown seems inevitable as long as Gary Gensler remains chairman. Gensler’s term runs until 2026, so he has plenty of time. If he isn’t expelled from the SEC because of his close encounter with Sam Bankman Freed, that’s a different story.
All cryptocurrencies other than Bitcoin are targeted. Almost all crypto exchanges and platforms offer cryptocurrencies other than Bitcoin, so they are also potential targets.
need more regulation
2023 will see many cryptocurrency regulations. There are probably a lot of good regulations, but there are also some bad regulations. Even if you have global encryption rules, the encryption rules can vary by region. But the collapse of FTX could eventually lead to regulation.
A little right, a little silly – that’s fine
The lack of regulatory clarity has made regulators wary of investing in cryptocurrencies, especially altcoins. Restrictions in the US, EU, etc. will bring inflows and may contribute to the recovery in the first quarter.
Decentralization of crypto projects is facilitated by crypto regulation. The only way to circumvent many of these regulations is to decentralize from top to bottom.
Most people agree that regulation is generally good, but some crypto regulation can be harmful. The worst rules are payments, DeFi, privacy, and possibly self-control . Bad crypto regulation could slow down DeFi adoption. Defi’s protocol is decentralized and therefore not included in most crypto regulations.
Crypto Adoption Expands
By 2023, the number of cryptocurrency holders will increase, with approximately 4% of the world’s population adopting cryptocurrencies. Growth has been exponential, but there are many reasons to keep growing.
Facebook and Instagram are currently testing a number of smart contract cryptocurrencies, including Bitcoin and Ethereum. Starbucks has developed a Polygon loyalty program built on NFT.
Additionally, free-speech social media platforms such as Telegram and Signal are starting to incorporate many cryptographic features into their platforms. Similarly, Elon Musk has confirmed that Twitter will also integrate crypto. Together, these companies have billions of users, and it’s important that even a fraction of them adopt crypto.
It’s that simple. There are no predictions for 2023, but there are some notable trends.
The McClatchy Newsroom and editorial staff were not involved in the creation of this content.