The year 2023 is here! Cryptocurrency fans have had to go through a lot in the last 12 months. We have seen falling prices, bankruptcies and a lot of uncertainty in the market. The year 2023 could therefore be a new beginning for cryptocurrencies and the crypto market. What are our main predictions and forecasts for 2023?
In this article, we want to take a look at what the year 2023 could look like for cryptocurrencies and what exciting projects, possible price increases and new trends lie ahead.
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How was the year 2022 for cryptocurrencies?
2022 has been a rather disappointing year for cryptocurrencies. We have seen the bear market in full effect, causing cryptocurrencies to lose between 50-80% in value over the past 12 months. Hikes in key interest rates, especially in the United States, and bankruptcies of major crypto companies also caused heavier losses.
However, we also saw positive sides. Bitcoin adaptation and hash rate continued to increase continuously. The Ethereum merger has been successfully completed. Cardano has also made significant progress. If you want to know everything about the year 2022, do not hesitate to read our review of the year 2022.
What can we expect for cryptocurrencies in 2023?
For now, we can expect the bear market to continue into 2023. Over the past few days and weeks, it hasn’t looked like cryptocurrency prices could rise again. But there is plenty to suggest that 2023 could be another positive year for cryptocurrencies.
2023 would now be the second year of the current bear market. A bull market return this year is unlikely. A bear market in the Bitcoin cycle lasts 2 to 2.5 years. But that doesn’t mean that cryptocurrency prices won’t rise over the next 12 months.
In the following, we would like to make our most important predictions and forecasts for the coming year:
Prediction #1: Bitcoin Price Sees a Longer and Stronger Rally
Bitcoin price could see a strong recovery again in the coming weeks and months. This was also the case in 2019. At that time we could also observe the second year of the bear market and Bitcoin came out of a year in which it had lost massively in value. At that time, the price of Bitcoin was able to rise from $3,500 to $10,500, a tripling.
This could be repeated in one way or another in the months to come. Right now, the price of Bitcoin is likely heavily undervalued due to the latest interest rate hike by the US central bank, the FED. The course could increase again to a value that corresponds to the current adaptation of the cryptocurrency.
Prediction #2: Polygon will continue to perform well
One of the cryptocurrencies that has performed relatively well in recent months has been the Matic Coin from the Polygon network. Polygon is a scaling solution for the Ethereum blockchain and can move transactions to sidechains. The Layer 2 solution has become increasingly popular with dApp developers in recent months.
2023 should also be a successful year for Polygon (MATIC). This time, however, the price is expected to rise even more strongly and may even gain a few places in the list of cryptocurrencies by market capitalization in the coming months. In 2023, we see a strong increase in the price of Matic Coin and an increase in the list.
Prediction #3: Binance’s Dominance Among Crypto Exchanges Will Continue to Rise
Over the past few weeks, there has been a lot of talk about Binance and the financial situation of the largest crypto exchange. Because after the FTX implosion, Binance didn’t look the best. After all, a tweet from CEO Changpeng Zhao ultimately triggered the implosion of FTX’s FTT token, driving the competitor out of business. But even after that, Binance refused a quick financial audit because auditing firms don’t trust it. Communication was not particularly good.
A Binance implosion seems very unlikely as of now. The concentration of power at Binance is expected to continue to increase in 2023, which will be watched critically by the crypto community. However, smaller exchanges are more likely to suffer from the crisis of confidence in the crypto exchange, as the majority of smaller investors are more likely to trust the market leader.
Prediction #4: The Shiba Inu will remain in the shadow of the Dogecoin
The Shiba Inu coin saw massive hype and extremely strong increases in 2021. It was the second major meme coin after dogecoin to really explode. In 2022, the Shiba Inu Coin was able to establish itself relatively well. But above all, Dogecoin made a name for itself in November with increases of more than 100% in a few days and rose to 8th place by market capitalization.
The year 2023 should not bring an implosion for the Shiba Inu coin. However, it will hardly emerge from the shadow of Dogecoin. If we see strong memecoin rallies again, they should be driven primarily by dogecoin. DOGE fan Elon Musk’s takeover of Twitter should help Dogecoin massively.
Prediction #5: Bitcoin dominance will rise sharply
Bitcoin dominance has increased again in recent weeks. We often see an increase in bitcoin dominance in a bear market. Due to interest rate increases in the year 2022, we could not observe this continuously. Bitcoin dominance has been falling for a long time. It was only after the crash of FTX that altcoins went down well again.
Although 2023 should see price increases again, Bitcoin could outperform altcoins. Interest rate hikes are unlikely to be sustainable beyond 2023, allowing Bitcoin to regain value as the primary alternative to FIAT currencies. In bullish phases, altcoins could rise more than bitcoin, but in bearish phases, altcoins should suffer much more than bitcoin.
What can you do as an investor in 2023?
We recently published an article on how to get rich with cryptocurrencies in 2023. Here you will find our instructions with important tips.
The year 2023 will most likely not bring new records like the year 2021. We are still too early in the cycle for that. Still, the massive losses of 2022 should be mostly a thing of the past. The second half of 2022 has already brought stabilization and 2023 could bring a trend reversal, at least in the medium term.
As an investor, you currently have a great opportunity to buy cheap cryptocurrencies, the value of which will most likely increase in the medium to long term. In the following years, Bitcoin and Co. will hardly be as cheap as at the turn of the year 2022 / 2023. In addition, very good investment opportunities will arise during the year.
So follow Cryptoticker regularly to stay up to date!
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We currently have an exciting test offer for you! you can our Premium Membership Try it for €1/day for the first month. Consider giving it a try if you want to stay updated on the crypto market! You will receive trading ideas and professional trading support in the premium area. In addition, you will often receive information on the latest crypto trends at an early stage! So could our customers also buy various NFTs early enough. If you want to know more about our Premium trial offer, then Click here!
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