It’s time to give Bitcoin advocates their credit because the cornerstone cryptocurrency has proved once again that it is resilient.
With the bear market taking down several digital assets and the Sam Bankman-Friend’s FTX exchange collapsing, Bitcoin managed to stay strong, even if it lost some of its value (but let’s remember that all cryptocurrencies did). Bitcoin’s price hit a two-year low in November 2022, but that was then; now it’s gaining ground again, and its value is slowly but steadily increasing. The digital currency experienced a solid rebound from the last year, and investors wonder how to buy Bitcoin to diversify their portfolios again.
But as usual, when it comes to the crypto sector, it’s paramount to review the context because it’s a highly volatile market. Research shows that Bitcoin gained in value due to the federal government’s assurances that Silicon Valley Bank depositors could still access their money at the failed bank, which made investors regain their confidence. Bitcoin’s price spiked from the beginning of March towards its end, and the digital currency hit a new nine-month high.
Those wondering if they should buy Bitcoin in 2023 should examine some factors.
What could fuel Bitcoin’s rise in 2023?
Crypto experts think Bitcoin could and should have a positive evolution in 2023. However, let’s not ignore a series of issues that might impact its market cap growth. One major problem is the legal battles some crypto exchanges are dealing with, especially after the collapse of FTX. This could be a setback in its growth because the event affects people’s trust in digital currencies. Suppose the New York Stock Exchange crashes; the entire stock market would be incapacitated.
Even if some regional banks dealt with meltdowns over the last few months, broader financial markets maintained their stability. In this context, traditional assets have started to recover and show signs of future growth. Depending on other conditions, this could drive money away or towards alternative assets.
Besides the sector’s negative pressures, other essential factors also impact Bitcoin’s value in 2023.
Digital currencies’ institutional legitimacy
Corporations and institutional investors worldwide have been accepting crypto payments for a while. Tesla is one of the most well-known examples because the company invested billions of dollars in Bitcoin, transforming it into a mainstream asset. Even if some unloaded their investments when the bear market started, the trend of widespread adoption continues.
Crypto has become popular as a payment method
The global adoption of cryptocurrencies has driven the demand for crypto payments because Bitcoin holders want to use their funds to pay for services and products besides using it as an investment solution. Major brands worldwide have begun to offer digital currency payment options, and the market is predicted to grow in 2023.
The crypto sector is subjected to public policies
A series of global factors like the pandemic, inflation, and geopolitical conflict have caused economic uncertainty, and several investors have turned to alternative assets like Bitcoin as potential safe-haven investments. Considering the growing popularity of Bitcoin and other digital currencies, global regulators have also started to develop policies to regulate its evolution. This could impact its price because while some countries like El Salvador have adopted it as legal tender, others refuse to accept cryptocurrencies.
Are there any chances for Bitcoin’s price to grow in 2023?
Those interested in buying Bitcoin want to determine if it could grow in value in the short and long term. Some crypto specialists state that the market is in a bullish phase, but it’s recommended to tread carefully. Bitcoin and Ethereum had a solid start of the year, and the crypto market has done a tremendous job at reviving the assets from their 2022 fallout. Traders can take advantage of discounted prices and the present sector’s positive news to invest in Bitcoin.
Bitcoin has moved forward after hitting a new high in February, and it’s on the road to growing even further in the following months. The first-ever-created digital currency had an explosive start of the year, and investors believe its value will continue to increase.
Crypto predictions investors should consider
The market is heading for an exciting climb or dramatic crash
No one can tell what the future holds for financial markets and digital assets’ prices could fall or spike. While most experts don’t see a crash in 2023, it’s crucial to remember that several factors impact cryptocurrency prices.
More investors will buy Bitcoin
Financial specialists believe that over 500 million people worldwide will own Bitcoin in 2023 because the market is subjected to great adoption.
The sector will move toward decentralised finance
Decentralised finance and decentralised autonomous organisations are predicted to become the highest growth areas of blockchain. Decentralised finance aims to bring better alternatives to traditional financial products, removing the need for a middleman. On the other hand, decentralised autonomous organisations work as internet communities. The demand for decentralised finance is expected to grow in the following months.
Besides Bitcoin, investors should also watch out for altcoins like Ethereum, Cardano, Solana, and Polkadot.
It’s essential to note that decentralised finance is part of Web3, which requires the incorporation of blockchain and non-fungible tokens.
Most meme coins will disappear, and Ether will outperform Bitcoin
Meme coins have triggered hype around the crypto sector, but everyone knew they were not here to stay because they lacked utility. Even if some meme coins like Shiba Inu and Dogecoin climbed in price over the years, most of them disappeared shortly after their introduction on the market.
Ether, the most well-known altcoin, outperformed Bitcoin in 2021, and it’s expected to do it again once the market recovers. Experts believe that it could do it due to the surge in sales of NFTs because the most valuable ones run on the Ethereum blockchain.
Predictions suggest that Bitcoin and other cryptocurrencies will have a good year.
The crypto sector has been on a roller coaster the last few months, with prices rising and falling rapidly, but 2023 could tame down some of this volatility.
