Cryptocurrency predictions: What do you expect in it? 2023? We’ve collected views expressed by leading market experts and the most anticipated trends, updated to September 2023.
Will cryptocurrency prices rise or fall, and will they provide any surprises for investors? What are the expectations for the near future? price Bitcoin Will it rise again? What is the impact of the arrival of the Bitcoin ETF and the halving? Finally, what kind of impact might innovations coming from the regulatory front have?
There are many aspects to consider when analyzing Crypto market And they are assumed Bitcoin and cryptocurrencies predictions in 2023. Let’s see what they are, in an attempt to anticipate the future scenarios that are about to impact the sector.
Cryptocurrency Forecast (Updated September 2023)
2023 is off to a positive start for most people The best cryptocurrencies on the market. After an unforgettable 2022, the current year is witnessing a recovery in the market, even if we remain far from historical highs.
After a very volatile first half, the second half of the year was more disappointing than ever, with… Bitcoin Still can’t get back over $30k.
While it is true that the consequences of last year’s FTX exchange failure are still impacting the sector, the major cryptocurrencies – Bitcoin and Ethereum – have been able to benefit from a more encouraging macro picture in recent months. However, after a period of positivity, we entered the “neutral” zone.
Another factor that influenced the trend of cryptocurrencies in 2023 is related to the rise in interest rates of the central bank of the United States, the Federal Reserve. In fact, cryptocurrency prices collapsed last year along with the prices of other risky assets. Higher rates generally reduce appetite for riskier investments, and this is likely one of the reasons for the decline in digital asset prices over the past year.
In fact, cryptocurrencies responded to the decline in liquidity, just like other risky assets, and collapsed when the Fed announced its intention to raise interest rates in November 2021 and then throughout 2022 as the Fed continued its aggressive monetary policy. In addition, the collapse of some individual cryptocurrencies and exchanges such as FTX has put traders’ confidence in virtual currencies to the test. But instability in the banking sector (mostly in the US) has brought many traders back to focus on cryptocurrencies, believing that future interest rate hike policy will be less aggressive.
The future of cryptocurrencies in 2023 therefore depends on the risk appetite of the investment community. At the moment, it seems that the market is not particularly inclined.
Meanwhile, Bitcoin is poised to close its second straight week in the green, as the price continues to test investors’ resolve. A climate of panic is swirling around the sector, driven by investors who have bought Bitcoin in the past three months, disappointed with the performance of the cryptocurrency king.
As a result, there is a general feeling of caution among Bitcoin traders and analysts, leading many experts to predict a test of new lows.
However, Bitcoin remains an interesting investment Expect new good returns in the long term. Governor Other than Piscesor addresses holding less than 100 BTC, have risen to all-time highs, now holding 41.1% of the available supply.
This indicates a strong massive accumulation, a Bullish signal For those who own Bitcoin.
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Recent decisions for secondThe American Consob correspondent confirms that the conflict continues between… Regulatory authorities And major cryptocurrency exchanges. To this day, they remain under the lens Coinbase and Binance. The context, as is known, will affect the aura of independence and unmanoeuvrability that has always characterized the world of cryptocurrencies, discouraging market participants and triggering a mechanism of fear and mistrust that negatively affects cryptocurrency prices.
On the other hand, it has been confirmedInstitutional interest in virtual currencieswhich could translate into a strong upward push in the coming months, and expect the arrival of A Bitcoin ETFwhich would pave the way for investment in cryptocurrencies from all that segment of investors who are interested in the sector but are not inclined to the exposure generated by buying.
Cryptocurrencies should also be considered Proof of work It seems preferable in light of recent SEC rulings – some native tokens, such as SOL, are officially listed on the list of vulnerable assets. This action puts pressure not only on exchanges, but also on the entire community associated with the world of cryptocurrencies. Therefore, large investors are likely to favor Bitcoin, which is seen as more stable and secure, while proof-of-stake networks could record new lows in the wake of the US regulator’s decisions.
according to Context of uncertaintyit would be reasonable to predict that there will be no further significant rise in the value of Bitcoin and cryptocurrencies in the remainder of 2023, also in light of the fact that prices still look partially inflated due to the significant rise in 2021. However, in 2024, Thanks toBitcoin halvingBig movements are expected.
Cryptocurrency Forecast 2023: Factors to Watch
Let us now analyze the factors that have a significant impact on the direction of the cryptocurrency market in 2023 in order to justify the forecast in detail:
- 1) Institutional interest
One of the main bullish factors that promise to support price growth and positive outlook for cryptocurrencies in 2023 is the increasingly strong interest of US financial institutions in the sector, largely due to demand from BlackRock and other large companies for listing. In the market Bitcoin ETF.
It is an event that clearly signals the return of institutional investments in the market, especially regarding Bitcoin, and which promises to make speculation on the world’s number one cryptocurrency more accessible to the general public. In fact, ETFs are funds that are traded on the stock exchange and facilitate investing for ordinary savers. If applications for Bitcoin ETFs are approved, there will be a significant increase in liquidity invested in Bitcoin, and its price will rise further and with it Bitcoin prices. Best cryptocurrencies of 2023tokens with the highest uppercase value.
- 2) Regulatory authorities
US regulators continue to put pressure on cryptocurrency exchanges, and this process may further complicate the situation for Bitcoin and beyond.
The Securities and Exchange Commission (SEC) launched a barrage of charges against two of the world’s largest cryptocurrency exchanges in early June – Coinbase and Binance – Starting a legal battle that will hopefully help define the future of cryptocurrencies. Billions of dollars in digital assets pass through their platforms every day.
Crypto has been in a regulatory gray area since its inception – after all, most of the financial rules in place today were put in place before cryptocurrencies were born.
The Securities and Exchange Commission (SEC) believes that most cryptocurrencies are securities (GuaranteesAs such, current laws give the authority the authority to regulate them, as well as the websites and apps they are bought and sold on.
While the two cases are different in many ways, Coinbase and Binance are accused of failing to register their exchanges with the Securities and Exchange Commission.
However, crypto companies have been fighting this absolutism for some time: crypto, by its very nature, must operate outside the traditional financial system. Instead, new rules are needed to determine the path cryptocurrencies should follow.
If the SEC wins in court, it would likely force cryptocurrency companies to register with the SEC, which could lead to radical change.
- 3) US interest rates
Since last year, the Federal Reserve has been raising interest rates to deal with an inflation boom, a context that has led investors to take advantage of more attractive yields on bonds, which are considered safer savings vehicles than cryptocurrencies.
Jerome Powell’s statements at the last meeting of the Federal Reserve regarding possible new increases in interest rates caused the cryptocurrency market to fall by 1.5% to $1,060 billion.
Bitcoin traded sideways on Powell’s comments and rising 10-year US Treasury yields.
Comments from the Federal Reserve triggered a sell-off in many markets, including the cryptocurrency market.
On the other hand, the optimistic outlook for the US dollar, which is attributed to the more aggressive stance of the Federal Reserve, is putting more pressure on the Bitcoin price. Commenting on the meeting, the Fed hinted at the possibility of raising interest rates again before the end of the year, due to continuing concerns about inflation. Moreover, central bank members expect the interest rate to hover around 5.1% in 2024, implying only two interest rate cuts next year, fewer than the four initially expected.
As a result, the Federal Reserve’s aggressive stance, coupled with potential new interest rate increases and a stronger US dollar, have negatively impacted the price of Bitcoin in recent days.
Given this backdrop, investors may view the dollar as a more attractive asset than Bitcoin, which could lead to a decline in demand for cryptocurrencies and a corresponding decline in the value of Bitcoin.
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