It is difficult to predict the future direction of the cryptocurrency market in 2023. The market is highly volatile and subject to many external factors, such as regulatory developments, market demand, and overall economic conditions. That being said, some experts believe that the cryptocurrency market has the potential to grow significantly in the coming years as more people become aware of and interested in cryptocurrencies, and as more businesses begin to accept them as a form of payment.
Ultimately, the future of the cryptocurrency market will depend on a wide range of factors and it is impossible to accurately predict its direction with certainty.
Parth Chaturvedi said “In terms of token-specific movements, BTC will be entering the last stage before the scheduled 2024 halving event and its institutional demand will be the main driver for prices. For ETH, the Shanghai upgrade will allow unstaking of ETH and will add more circulating supply. Other Layer 1 protocols would really need to justify their “ETH Competitor” status with falling developer interest, while Layer 2 Rollups are going to go mainstream as they allow for transactions to happen efficiently and only move settlements to the Ethereum Mainnet. Another altcoin pocket of interest would include Legacy DeFi tokens, which have continued to work like clockwork, even in these times of extreme stress and carnage. Other emerging themes to watch out for are DeSo (Decentralised Social), DAOs, and ReFi (Regenerative Finance).”
“Overall, for 2023, crypto markets are placed in a precarious situation with interest rates remaining high and several contagion effects still undiscovered. However, it is worth highlighting that prices don’t determine how the industry is booming at the “Build” level, with innovative projects continuing to explore new frontiers of Web3. The proverbial “tourist money” has left and rotated out of this asset class for now, while diamond hands continue to HODL,” said Parth Chaturvedi.
Mr Dileep Seinberg said “However, the upcoming year, 2023, will be looking a multiple developments around CBDCs and crypto regulations in India and across the globe. The crypto industry will continue to evolve and will become more mature. From the Indian perspective, the Union Budget which is likely to be tabled on February 1, 2023, will be a major event. The creation of the regulatory framework and MiCA will take place in 2023. CBDC applications and CBDC-based products will emerge, as was the case with UPI.As a result, projects with utility and value derived from real-world use cases will be driving the industry forward.”
“The focus will be on the growing interest in and adoption of CBDC. This could spark a new wave of CBDC-related startups and products. Better accountability will result from a focus on crypto-based auditing processes. NFT and the metaverse will develop more quickly in the future. In the upcoming months, tokenization of various real estate assets will also start to take shape. However, one should keep an eye out for projects in the Web 3.0 space in the coming year that demonstrate consistency, innovation, and technological advancement. On the other hand, a lot of attention will be paid to the global developments surrounding the regulatory framework,” added Mr Dileep Seinberg.
“Macroeconomic factors, such as inflationary pressure, rising interest rates, and the pivot away from it, as well as fears of a global recession, will play a significant role. In addition, it’s important to keep an eye on the projects’ financial health, the length of the crypto winter, the legality of the currencies, and the evolution of regulation. The year 2022 has significantly reduced investor wealth, wiping out more than $2 trillion in national wealth. 2023 is probably going to be a year of growth and consolidation. The later part of the upcoming calendar will see the emergence of new projects and potential signs of improving sentiment. How the year turns out, though, remains to be seen,” said Mr Dileep Seinberg.
Source – Live Mint
