Crypto Predictions that Might Actually Come True in 2023

Crypto Predictions that Might Actually Come True in 2023

People’s opinions on cryptocurrencies vary widely. While some believe cryptocurrencies to be a revolutionary technology that has the power to reshape the global financial system and offer innovative solutions to many of the world’s money-related problems, others think they’re nothing more than a waste of time and people should just treat them as a fleeting fad.

Regardless of what side of the fence you’re on, one aspect we can all agree upon is that cryptocurrencies are, by their very nature, incredibly volatile and unstable. The crypto industry came into existence with the emergence of Bitcoin back in 2009, which makes digital currencies the youngest asset class available today. So, it’s not really a surprise that a market still in its infancy is subjected to massive price swings. Investors can plan their moves based on the Bitcoin price today, but the values can change significantly in a short period of time, which makes crypto trading a very risky and complicated endeavor.

This renders most experts’ efforts at predicting the future of crypto rather useless. As much as we’d like to have a clearer insight into what’s going to happen to cryptocurrencies in the years to come, there’s no solid ground to base our predictions on. This leaves us with a lot of questions and not that many answers. Has crypto already reached its peak? Will Bitcoin ever lose its leadership position? What’s the next big crypto to rise on the market? No one can provide definite answers to these questions.

However, based on what we’ve learned about cryptocurrencies so far and taking into account the most recent developments in the market, there are a few scenarios that analysts believe may play out in 2023.

The crypto market is on the path to recovery

2022 was a difficult year for digital currencies, to say the least. We’ve witnessed the collapse of several coins, the fallout of a leading crypto exchange, and heightened volatility for all cryptos in the market. However, there were a few positives in all this turmoil. Ethereum completed its biggest upgrade ever, the Merge. This reduces the networks’ energy consumption by up to 99,9%. Cryptocurrencies at large enjoyed more attention and acceptance from both state organizations and private companies.

We can’t tell for sure if the streak of negative events has ended just yet. But if the past is any indication of future performance, the crypto market is likely to recover in 2023. Crypto market cycles include regular bear and bull runs. Bear runs are when prices drop for a long period of time and confidence is low. Bull runs are where prices rise, and market conditions are favorable. By looking at the previous market cycles, analysts predict that the latest bear run, which has been extremely harsh, is nearing its end. Thus, the crypto market might start the new year on a positive trend.

Bitcoin will continue to attract new investors

If the market does recover in the months to come, as most crypto enthusiasts hope, Bitcoin is probably going to be at the forefront of the movement. As the first and most valuable crypto in existence, Bitcoin has preserved its leading position through all the market’s highs and lows. None of the altcoins that came afterward has managed to come close to Bitcoin’s success, let alone outperform it.

What’s more, Bitcoin remains investors’ first choice when they decide to include digital assets in their portfolios. So, unless cryptocurrencies will magically disappear all of a sudden, Bitcoin’s user base is likely going to increase in 2023. Those who opted out of Bitcoin trading during the crypto market might resume their activity. Whereas those who’ve never owned crypto before might be tempted to start their crypto trading journey with Bitcoin. Especially, as the market gets back on its feet.

Meme coins will be gone for good

Meme coins started as a joke at a time when cryptocurrencies were picking up all over the world. Dogecoin was the first meme coin to be created back in 2013. It triggered a wave of similar coins that became quite popular over the following years. This is mostly due to viral tweets from public figures like Elon Musk. In 2021, the number of meme coins on the market reached 124.

However, it appears that most of these coins have already started to lose their shine. Meme coins don’t have any real value. Thus, their popularity is solely based on social media hype. When that hype dies down, so does the crypto, which is exactly what happened with many memes coins in the past year. In a market that’s already oversaturated with thousands of crypto projects, it’s highly unlikely there’s going to be any place left for meme coins. So, even if they haven’t disappeared completely off the map, there’s a real possibility 2023 might be their final year.

Moving closer to crypto regulation

The crypto industry has been compared to a financial Wild West, given its volatility, unpredictability, and lack of regulations. If cryptocurrencies are ever going to make it mainstream, they need to get rid of their bad reputation. Thus, they should address the issues that have been plaguing them since their inception. And the only way they can achieve that is through regulation.

The problem with regulating digital currencies is that it clashes with their main characteristic – decentralization. This makes it incredibly difficult for authorities to find a middle ground. Coming up with a regulatory framework while also preserving cryptos' inherent qualities is difficult. We’ve already seen some progress in this respect in 2022, with the European Council approving the Markets in Crypto Assets (MiCA) law. That’s just the first step in this direction, as many other similar initiatives will probably follow in 2023.

If any of the predictions mentioned above will come true or not remains to be seen. But regardless of what analysts may say if you want to dive into the crypto market, it’s wise to conduct your own research and draw your own conclusions.

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