Featured image by Aleksi Räisä via Unsplash
A cryptocurrency winter has battered investors’ hopes in recent months. Will 2023 lead to brighter days for bitcoin and other cryptocurrencies?
Bitcoin took a 67% bungee jump in 2022, an uncharacteristic move for this coin. But investors are not yet ready to give up. After all, bitcoin gave them 59% and 60% returns in 2020 and 2021. Now, some experts are insisting that bitcoin will rock 2023.
RELATED ARTICLE: CREATIVE WAYS TO FUND YOUR STARTUP
If you’re not already trading bitcoin, you can get started today. Trade safely with the ethereum code. They are a trading platform that can help you to invest and trade in a range of cryptocurrencies.
Could 2023 Be a Big Year for Bitcoin?
Many crypto experts believe that 2023 will bring positive developments for cryptocurrency investors. But there is a long road between expectations and fulfillment. Therefore, your questions about crypto are to be expected as crypto has not done well in recent months.
Nonetheless, we are hopefully optimistic about the future of cryptocurrency prices in general. Here’s why:
Institutions Are Starting to Invest
We expect that more institutional investors will begin investing in cryptocurrencies in the coming year. According to reports, institutional investors have been watching crypto movement, especially bitcoin, throughout 2022.
Among the interested parties, 76% of them say that they are going to invest in cryptocurrency. Institutional investors have a much greater ability to invest compared with retail investors, so this is good news.
In fact, Bank of New York Mellon said they would initiate custodial offerings on cryptocurrencies in the coming year. This bodes well for bitcoin.
Blue Chip Companies Are Betting on Bitcoin
More than 47 million people in the US have invested in bitcoin. Around the world, 500 million people own bits and pieces of this coin. Many of them are holding onto their investments, probably holding their breath and waiting to see what will happen next.
Meanwhile, a few online companies are beginning to accept cryptocurrency as payment. This attracts yet more investors, including blue chip companies.
For example, Google’s parent company, Alphabet, recently said that it would accept bitcoin in payment for services such as Google Cloud. Quickly following suit, Mastercard announced that it would be working closely with the crypto firm Paxos to develop a system to enable trading and investment in crypto.
More Investors Will Adopt Bitcoin
If you have been watching the crypto space, you might know that bitcoin fell at the end of 2020 and continued its decline throughout 2021. Especially in the year 2021, all cryptocurrencies performed badly.
According to most financial pundits, crypto’s bleak winter will continue throughout 2024. Nonetheless, those same pundits also predict that bitcoin’s price will start picking up around mid-2023 and continue climbing through the start of 2024.
This is great news for cryptocurrency traders and investors around the world.
The Federal Reserve Will Begin to Ease Off on Interest Rates
Adding to crypto’s woes, the global economy is suffering from a recession. The fall in the prices of traditional currencies can be attributed to global events like the COVID-19 pandemic and Russia’s war against Ukraine.
In response to the recession, the US Federal Reserve Board hiked interest rates. This affected long-term investment in assets such as bitcoin.
Hopefully, interest rates will cool down again before too long. Then investors will feel more comfortable investing in cryptocurrencies such as bitcoin again.
RELATED ARTICLE: HOW TO COVER YOUR BUSINESS EXPENSES IN AN INFLATION CRISIS
Bitcoin Will Rise Again!
In the past, investing in bitcoin allowed some people to go from rags to riches. And while the last two years have not gone well for cryptocurrencies, experts expect crypto prices to rise again, perhaps even in the coming year. So if you’re holding onto a crypto investment, don’t let go. Now is not the time to cut and run.
RELATED ARTICLE: BITCOIN ALTERNATIVES: THE MOST IMPORTANT OTHER CRYPTOCURRENCIES