7 Predictions for the Future of Crypto in 2023
It's safe to say that cryptocurrency didn't have the best of years in 2022. For most of the year, the only cryptocurrency news that made headlines was those of bankruptcies, failed investments, and rapid collapses. Barely a year ago, the price of Bitcoin was at its all-time high and the emergence of NFTs filled the air with excitement and dreams of easy wealth.
Who could have predicted the rapid collapse of Terra or that crypto giant, FTX would file for bankruptcy barely days after hitting a $32 billion valuation. But in the blockchain world, volatility and uncertainty are constant variables and things like this happen. All these have lead to questions like, is the crypto wave over? The answer is no! Far from it. Experts are still backing cryptocurrency to make a major turnaround and with this exhausting year already coming to an end; let's take a peek into an hopefully better 2023 by giving you our seven crypto predictions for the upcoming year.
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Major Crypto Predictions For 2023
Whether you're a crypto trader, blockchain enthusiasts, or just an average guy that enjoys Bitcoin betting, you'll be interested to know what possibly awaits this amazing technology in 2023. Here are seven major predictions to watch out for.
1. The Price of Bitcoin Will Still Go Lower in the 1st Quarter of 2023
Bitcoin's heavy decline has been attributed to multiple factors. In November 2021, Bitcoin shattered financial records when it hit an all-time of over $68,000. Fast forward to November 2022, its value had plummeted to just over $16,000 and we believe that the crash in prices is far from over.
Multiple reports have shown that major crypto mining companies recorded billions in loses this year due to fall in prices. The mining process has become unprofitable due to the recent surge in electricity prices influenced by the Russia-Ukraine war. Even so, miners have to sell at very low prices.
2023 might see the dissolution, restructuring, or merging of mining companies. Add this to the possibility of Ripple losing its ongoing 2-year legal battle with the SEC; we believe that the Bitcoin price crash might go well into the first quarter of 2021. Major crypto experts are also predicting prices as low as $10,000.
2. Bitcoin Resurgence in the 2nd and 3rd Quarter of 2023
This prediction heavily relies on the outcome of major ongoing events in the world today. It's no secret that higher inflations in most of the world's most stable markets has led to heavy sanctions, and increased attempts to cap and control energy prices. The end of the Russia-Ukraine war might result in lesser sanctions and more freedom for me miners.
Furthermore, more people in developed countries are expected to adopt crypto as a hedge against inflation while people from lesser developed countries will be looking for alternatives to tackle the effects of the dollar hegemony on their local currencies. By the second half of the year, there should be lesser bad news about cryptocurrency and an increased trust. This could cause Bitcoin to climb to as high as $30,000.
3. More Decentralized Stableсoins and Possibly a Major One
A stablecoin is a cryptocurrency that's designed to have a stable price. This is achieved by pegging it to an established currency (USD, EUR) or commodity (Gold), or by regulating its supply with an algorithm. Popular stable coins include USDC, USDT, and Dai.
Despite the massive collapse of popular stable coin UST in mid-2022, several experts are predicting an increase in the release of stablecoins come 2023. There's also a huge possibility of one those coins hitting a billion dollars in market cap. So far, only USDT, USDC, Binance USD, and Dai have achieved this feat.
4. More Growth for Web3 Game Platforms
Since 2020, the gaming industry has witnessed an astronomical growth. The industry is currently worth over $300 billion and more than 3 billion people identify as gamers. Micro transactions and in-app purchases in games are at an all-time but this success hasn't necessarily been reflected in web3 and crypto games.
This is expected to change in 2023 as most major game companies like Microsoft and Ubisoft are now exploring web3 and are hiring crypto, NFT, and web3 experts in numbers. Also, multiple major play-to-earn and play-to-own games have set 2023 release dates and there's high possibility of at least one becoming huge.
5. Ripple to Lose SEC Lawsuit
In 2020, the SEC accused Ripple Labs of offering unregistered security with XRP-USD and they have both been in an intense legal battle since then. Due to the significance of this lawsuit, its outcome might impact the crypto space heavily and we believe that Ripple will lose the case.
Despite their support from large crypto companies like Blockchain Association and Coinbase, the company might still lose and this mainly due to the SEC winning its unregistered security lawsuit against crypto company LBRY in 2022.
6. Global Bitcoin Adoption
Global Bitcoin adoption has been touted for years and 2023 might just be the year. Chief strategy officer of Human Rights Foundation Alex Gladstein spoke happily about the just completed Africa Bitcoin Conference in Accra and how people from rural areas across Africa were already building on Bitcoin.
Also, Latin America is currently the fastest crypto adopters in the world mainly due to high inflation and relatively young population. More regulations are now giving companies the freedom to explore the crypto world and there's no limit to what they can achieve in 2023.
7. Elon Musk to Introduce More Crypto Options on Twitter
Since Elon Musk purchased Twitter, there have been several changes like the introduction of the verification tag for Twitter Blue subscribers. More payment functionalities are expected in the coming year as Twitter has already filed the relevant paperwork with the Treasury Department’s Financial Crimes Enforcement Network for more freedom to process payments. Elon Musk is also a massive crypto enthusiast and we expect to see more crypto options available on Twitter in the coming year.
The Bottom Line
There's no denying that crypto had a very rough year but most of its problems were results of issues it couldn't control. Looking forward to the New Year, we shared our 7 crypto predictions. However, you must know that there are no crystal balls in crypto and predictions are not certain. Trends change and no one can be fully certain about the future of Blockchain in 2023. Our predictions are merely based on current and expected market conditions so they shouldn't be taken as investment strategies or advice.
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