The year 2022 has passed and now we will welcome 2023. Entering 2023, there are several projections for the future, one of which is the fate of crypto.
In 2022, crypto seems to have turned 360 degrees with conditions in 2021, where crypto had its heyday in 2021. But in 2022, crypto actually experienced a bad period because of several downfalls of crypto companies.
However, as in previous years, there are many optimistic (bullish) and pessimistic (bearish) views about the future of crypto and how crypto will be in the next year.
Some observers believe that 2023 could be a reversal period after languishing throughout 2022, but some are of the view that the bearish period will continue in 2023.
Regardless of the debate over bullish and bearish views that always occur among observers in crypto assets. There are interesting projections that will be present in the crypto industry in 2023.
The following is the projection or outlook for crypto in 2023 based on the views of several observers.
1. J.P Morgan
Investment company from the United States (US), J.P Morgan believes that the presence of crypto projects such as Ethereum brings a big factor to increase the use of blockchain.
"We believe that the Ethereum Merge and subsequent upgrade process namely Surge Ethereum can be a big factor in terms of leveraging blockchain use cases into new areas, including financial services," said analyst J.P Morgan.
2.Matthew Sigel (Vaneck)
According to an analyst from Vaneck, Matthew Sigel, he predicts that Bitcoin might increase to US$ 30,000 and could also potentially decrease to US$ 10,000 to US$ 12,000.
In addition, there are predictions from Sigel in the future, such as Bitcoin price predictions, the potential for great interest in blockchain technology, and the adoption of cryptocurrencies and stablecoins.
"It is anticipated that in the foreseeable future, institutions will use blockchain to simplify storage and settlement, while reducing costs for customers. Meanwhile, with persistent inflation Latin America is seeing the fastest adoption of cryptocurrencies and stablecoins in the world," the analysis said.
3. Tom Norwood (Loop Markets)
Loop Markets Co-Founder and CEO Tom Norwood predicts that the demand for bitcoin will grow and expects the crypto market to pick up in about six months time.
"The demand for Bitcoin should continue to grow regardless of market conditions because it is still better than most of the currencies because it has at least a good chance of going up. Whereas most currencies will only depreciate over time. Also, I think crypto adoption will grow later," he said in a statement.
4. Goldman Sachs
The largest investment firm in the US, Goldman Sachs said that any catastrophic event from FTX, would bring intense scrutiny from regulators.
"FTX's crisis over the current collapse of the crypto market is a great opportunity for potential intense regulatory scrutiny in the coming months," the statement said.
After seeing several predictions from observers, there are also several predictions that come from crypto companies, one of which is the crypto media company, CoinDesk. Not only CoinDesk, the Bitcoin digital wallet company, Coinbase
The following is the projection or outlook for crypto in 2023 based on CoinDesk and Coinbase.
1. Crypto Regulation
2023 is still the year in which crypto regulation returns to the market's attention. The difference is, it looks like in 2023, regulations related to crypto will be more vigorous.
This is because it is based on cases of downfall that befell crypto companies and had an impact on crypto assets. Current regulations tend to be needed so that not just anyone can commit fraud on the basis of crypto trading.
"There will be tougher crypto regulations proposed and an 'epic' battle by the community to fight off the bitches that threaten decentralization," said Laura Shin, a host of the "Unchained" podcast.
2. Web3 Platforms are Growing
A larger macro downturn in market conditions is expected to shift crypto projects away from speculation and more towards utility.
According to analysts from Coinbase, the future evolution of the crypto ecosystem could address subjects such as tokenization, decentralized finance (DeFi) permissions, and Web3 platforms.
Web3 is a term in internet technology. Web3 is the latest generation of internet which is the successor of the previous generation, namely internet 1.0 and 2.0. Web3 prioritizes freedom on the internet, so that a decentralized system is preferred.
Web3 will work using machine learning and also very sophisticated artificial intelligence so that the data presented to its users is more accurate.
3. Utilization of Blockchain Will Be Wider
Indodax CEO, Oscar Darmawan revealed that the use of blockchain technology would be very interesting.
The reason is, it is hoped that the development will not only occur in the financial sector, but other industries that are outside the financial ecosystem will also enter and use this technology.
This is considered to be possible because people will be increasingly busy discussing DeFi which relies on blockchain technology as the backbone of its operations.
He also predicts that this technology will continue to grow and become easier to understand.
"Not only blockchain, the metaverse will also be ready to take off because the infrastructure is getting more mature. Thus, it will be easier for people to do activities in the metaverse. Apart from that, the concept of blockchain in the health sector is also growing. For example, how can hospitals use blockchain technology to keeping track records of patients," added Oscar.
4. Bitcoin Halvings
Quoting from Zipmex, Bitcoin Halving is an event where miners' rewards for one block of Bitcoin will be halved every 210 thousand blocks that occur once every four years, until it reaches a maximum limit of 21 million.
That is, Bitcoin miners will receive rewards when they succeed in mining or adding new blocks in the blockchain network.
These rewards will also be obtained when miners successfully verify transactions made by users. However, this reward is not permanent.
Once 210,000 blocks are mined, the reward for each miner is then deducted. This moment occurs every four years and is known as Bitcoin Halving Day.
This makes this year an interesting year for Bitcoin investors and miners, because of this phenomenon, even though this phenomenon tends to occur in the final quarter of 2023.
Oscar said that the best time to buy Bitcoin is a year before the halving day. This means that this will happen in 2023.
He predicts that Bitcoin will enter a saturation phase in 2023 due to being dragged down by the price decline that has occurred since the beginning of this year. However, it will be followed by an upward correction as a sign of welcoming the halving day.
"When Bitcoin goes up, it will be followed by rising prices for other altcoins. I predict a Bitcoin bull run will occur in 2024. However, the right year to return to accumulating crypto is in 2023. The reason is, in the following year, the Bitcoin price could potentially have already climbing too high again," explained Oscar Darmawan.
High Quality Tokens Tend to Be Hunted
According to analysis from Coinbase, institutional investors have backed away from deploying their capital to mostly risk assets in the second half of 2022, due to rising interest rates, high inflation, and weak equity returns.
The savings came even amid assumptions that the recession in the US could be mild. Expectations on a recession timeframe from early 2023 to the end of Q1-2024, due to the stimulus-supported reserve buffer and the still sizable number of job vacancies strengthened the economic data.
They will tend to select higher quality digital assets such as bitcoin and Ethereum, based on factors such as tokenomic sustainability, the maturity of their respective ecosystems, and their liquidity.
In addition, many conventional risk assets still tend to be better and investments for cryptocurrencies such as BTC and ETH cannot be measured from their fundamentals, which could open up several opportunities.
Coinbase assigns a low probability to the crypto opportunity by its performance, which will set it apart from conventional risk assets in the first few months of 2023.
Number of Bitcoin Miners Will Increase Again
As previously explained above, that from this year to 2024, investors will see the Bitcoin Halving phenomenon, where this phenomenon will revive Bitcoin and other cryptocurrencies.
However, Coinbase notes that economic conditions that have been dire for bitcoin miners are unlikely to improve any time soon, amid continued weakness in the broader crypto market.
The latest data from Glassnode shows that Bitcoin miners are selling at 135% of the coins mined per day, indicating that miners are liquidating all of their newly mined coins as well as their portion of their Bitcoin reserves.
The events of early November 2022 prompted an increase in Bitcoin miners to sell them, bringing aggregate miner reserves back to levels last seen in early 2022.
However, with the Bitcoin Halving phenomenon, it is possible that the number of miners will increase again, moreover this phenomenon is also an event to reward those who have succeeded in mining or adding new blocks in the blockchain network.
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