2023 Crypto Market Predictions
When assessing how the cryptocurrency market shaped up in 2022, it was hardly the gains we saw that gripped the market the previous year. Instead, for many investors, 2022 was a year to forget, many cryptocurrencies dipped sharply, and this was due to several factors.
We will touch on a few of these factors today and establish whether we believe the market will experience some resurgence over the next 12 months.
It’s not all doom and gloom; Bitcoin has experienced several volatile dips over the last decade. Nevertheless, you would still be up if you bought it in 2013, even at the very bottom of the market last year.
It has also made headway into other industries, as there are countries that are now using it as legal tender and online casinos where you can use it to gamble. If you’d like to check out some of the latest odds and compare them across a range of websites that accept cryptocurrency, you can do so by checking out bitodds.com.
Responsible gambling
Responsible gambling is essential for all gamblers who deposit their hard-earned money with a casino or betting site. Setting limits and understanding the risks associated with gambling is crucial, and it should only ever be viewed as a source of fun rather than as a source of income.
It is essential for you to be aware of your behavior and to take steps to ensure that you are gambling responsibly. In addition, knowing when to get help is vital. If you believe you are showing signs of problem gambling, then speaking to a professional is the first and most important step you can take.
Volatility
Volatility in the crypto market? Who would have thought? This is one of the only certainties about cryptocurrency. The price swings are fierce because it is a 24-hour market that is broadly unregulated and distinct from many other investments.
It is not uncommon to move ten or 15 percent over a few days in either direction. NFT prices exploded during a short period and then experienced a major retrace.
With so many variables at play, including a stagnant economy, possible inflation in the West, the war in Ukraine, rising commodity prices and other factors such as economic policies to factor in, it can be a complicated market to predict.
Other events that can cause the market to implode include exchanges going bankrupt and billions being wiped off the market altogether, such as the collapse of FTX.
However, a positive economic outlook and improved market sentiment can also cause it to move quickly in the other direction.
Regulation
With many governments around the world sitting up and paying attention to cryptocurrency, there have been several ways that central governments are looking to impose regulation.
For some, cryptocurrency regulation is designed to stimulate growth in the sector and encourage innovative tech companies who are in the space to develop their businesses on their shores. However, some countries are calling for an outright blanket ban on cryptocurrency.
Depending on the strength of the regulation, this could have one of two effects. Firstly, sensible regulation that isn’t too restrictive could provide the market with the clarity it needs for massive institutional investment, especially in the United States.
The Ripple/XRP court case could be a pivotal moment in the history of cryptocurrency regulation. The court case has been rumbling since December 2020. However, many anticipate it will be over sometime within the next 12 months.
However, if the regulation is much more stringent, this could cause the price of significant digital assets to retract sharply. There’s been heightened focus on this part of the industry over the last few months, given the FTX collapse we mentioned earlier, where investors lost billions of dollars.
Conclusion
Unfortunately, there’s no crystal ball when it comes to any investment. When it comes to cryptocurrency, the entire market is very volatile. It would take a brave person to decisively say which way they think it will move over the next year.
The importance of the next 12 months cannot be understated. For many, it could be a make-or-break year for digital assets for several reasons we have discussed today. Our suggestion is to keep an eye on any news about Bitcoin and other digital assets. It is a lucid, moving target, and it is incredibly unpredictable.
Although it has had a solid start to 2023, many analysts remain bearish. However, given the pace of the market, this sentiment can easily switch too.
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