The entire cryptocurrency Market has experienced bumps this year. These bumps have affected the growth of many crypto coins and tokens significantly.
Even permanent market top performers like Bitcoin and Ethereum got affected. Bulls were expecting the crypto king to cross the milestone of $20,000,00 by 2023.
This seems to be a distant dream now. Many things are happening in the world of crypto these days. Bear-run in this decentralised digital domain of finance has extended as a result.
We have already talked about most of them in our previous posts. All in all, these things could keep the cryptocurrency market bearish in 2023 also.
Things listed below are compelling evidence of it:
- Several countries have successfully tested their CBDCs. India and Nigeria have also joined their league now.
- How can we not list the FTX fiasco here? It has become the biggest crypto scam in history. Thousands of investors have lost their money in it. What’s more important is the trust they have lost in crypto.
- Furthermore, FTX has declared Chapter 11 bankruptcy. Such a fiasco has impacted the business of many of its partners as well as crypto exchanges. BlockFi, the world’s leading crypto lending platform is compelling evidence of it.
- Even crypto lending platforms like Gemini, Galaxy, and Genesis are also struggling because of it.
Ethereum price has been rejecting the $1300 touch. The entire cryptocurrency Market in 2023 could be in bear mode for this reason.
Reasons Why Ethereum Is Not Crossing the $1300 Barrier:
- First, options traders are comfortable with downside market risk these days.
- Secondly, upstick in bear demand for Ethereum’s futures’ leverage.
- Third, investigators are grilling Silvergate Bank and FTX officials severely about the FTX scam.
The market could be bearish because of the FTX fiasco investigation.
In other words, these black-swan events have played a big role in the downfall of the cryptocurrency industry in 2022.
What About Ethereum And Bitcoin in 2023?
Ethereum is also 75% down from its November 2021 record. The market has been experiencing bull traps one after another since then.
Even Aditya Siddhartha Roy, a popular Market Analyst, has predicted the continuation of such mini bull traps in 2023.
As a result, the $700 milestone, a new all-time low record value of Ethereum, seems to be on the cards.
its technical downside target could be around $675 in 2023. In other words, expect Ethereum in 2023 could lose up to 50% more of its current market value.
Such a fall in Ethereum could be because of the fall in the market value of Bitcoin also. Experts are currently not so positive about the increase in the value of bitcoin in 2023.
Therefore, Bitcoin is expected to fall to $3500 or even below. Other cryptocurrencies like Ethereum, Solana, Doge, and more could also be in bear mode as a result.
What Does It Mean For The Cryptocurrency Market In 2023:
It does not mean that the market will not recover. However, the market will recover. But the process will take some time.
BTC could then cross the milestone of $100,000 or $200,000 in 2023. Other cryptocurrencies like ETH will then also reach their new all-time high.
Just play the waiting game till then!!
Even Tim Draper is hopeful about it.
The possibility of bears ruling the crypto market in 2023 is climbing the growth ladder.
Tim Draper predicts bitcoin will reach $250,000 next year despite FTX collapse: 'The dam is about to break' https://t.co/oKKhzbABTL
— CNBC (@CNBC) December 5, 2022
Regulation of Cryptocurrencies
Investors’ and traders’ demand to regulate cryptocurrencies is not new. Most financial investors and traders wanted the government to regulate cryptocurrencies. They wanted the government to regulate cryptocurrencies for all types of reasons.
ICE is now ready to listen to their demand. A recent tweet from the FSB has confirmed it. Elizabeth Warren, ICE boss, and a crypto skeptic senator has made it clear.
Cryptocurrencies in 2023 will be regulated as securities. Much of its credit goes to the FTX scam. Millions of investors are losing their money in relevant scams and Ponzi schemes.
Regulation of cryptocurrencies like securities is paramount for the purpose of protecting investors’ money.
FSB Has Come In Favour Of Crypto Regulation:
A tweet from the official Twitter account of The Financial Stability Board also confirms it.
The FSB Plenary met today in Basel. Topics covered included the outlook for financial stability; #cryptoassets and decentralised finance (#DeFi); addressing financial risks from #ClimateChange; and issues affecting #emergingmarkets and developing economieshttps://t.co/Oketd2CSZL pic.twitter.com/ZTnm8oTaia
— The FSB (@FinStbBoard) December 6, 2022
Just be careful as the cryptocurrency market in 2023 could be bumpy for most of the year. You will have to study the market well and with patience.
Play the waiting game and make your decisions only after watching the market trends carefully in 2023. Bull will toss the market up towards the end of 2023 only.
These factors are delaying the bull’s arrival in the cryptocurrency market in 2023. You will surely get desired results once you decide to play the waiting game.
You can refer to major crypto news platforms like CoinTelegraph and NewsBTC.
You can refer to CoinMarketCap for this purpose.
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