3 - 5 minute read
As the year 2022 comes to a close, many in the crypto community are looking ahead to 2023 and speculating on what the future holds for the market. In a recent video, several predictions were made for the coming year.
One prediction is that the worst of the current bear market will be behind us by the end of 2023. The bottom is expected to occur in the first quarter, thanks to the Federal Reserve’s expected halt in raising interest rates. However, it was noted that the bottom for Bitcoin (BTC) could be around $10,000 or slightly lower due to the correlated nature of the crypto market and the stock market, which is expected to drop another 20-30%.
It was also predicted that the Securities and Exchange Commission (SEC) will crack down on another big crypto project or company. The SEC’s criteria for determining which projects and companies to regulate have been somewhat opaque, relying on a subjective interpretation of the fourth part of the Howie test. This test is used to assess whether an asset is a security, such as a stock in a company, and requires additional regulation from the SEC. The fourth part of the Howie test pertains to whether a third party is creating an expectation of profit for a coin or token.
Increased adoption of decentralized finance (DeFi) was also predicted for 2023, as more people look for alternatives to traditional financial systems. Altcoin market share is expected to decline, while institutional adoption of crypto will likely increase. Big tech companies like Facebook and Instagram are also expected to adopt crypto, potentially in relation to the metaverse. The wolves on Wall Street were also predicted to acquire at least one blue chip crypto company, with Goldman Sachs and others rumored to be interested in buying up solvent subsidiaries of FTX.
In terms of international trade, it was predicted that BTC will start being used by more countries, particularly those that have faced sanctions or scrutiny from the United States and its allies. The BRICS countries (Brazil, Russia, India, China, South Africa) are reportedly working on their own reserve currency, which could be backed by a combination of their existing currencies. Other countries, such as Saudi Arabia and Hong Kong, are also expected to ease restrictions on crypto.
Finally, it was predicted that more countries will follow in the footsteps of China and Russia and start mining BTC on a large scale. This could lead to an increase in the number of BTC mining pools, as well as a decline in the number of independent miners.
2023 is shaping up to be a year of recovery and potential growth for the crypto market. While there are still many unknowns and potential challenges ahead, there are also many reasons to be optimistic about the future of crypto.
