Will the New Year 2023 continue to be Bearish?

As we look ahead to 2023, it’s clear that cryptocurrencies have cemented their place in the financial world. From Bitcoin to Ethereum, these digital assets have gained widespread adoption and recognition as legitimate forms of currency. Despite the crash that took place in 2022, cryptocurrencies still have a bright future. Will 2023 be good for cryptos?

Crypto Review: How did Cryptos perform in 2022?

One of the worst years ever for cryptos occurred in 2022. Since the start of the year, cryptocurrency values have decreased by 70% on average. There are principally two reasons for this decline:

An overdue correction was required after the cryptocurrency market experienced two years of extreme bullishness. Therefore, prices decreased.
FTX and other cryptocurrency exchanges failed in 2022 due to weak fundamentals. The majority of investors sold their shares as a consequence in order to lock in profits, leaving other investors behind. The bitcoin market experienced FUD as a result.

**Fig.1** Total Crypto Market cap in USD in 2022 – coinmarketcap

Why are Cryptos Crashing?

There could be a variety of reasons why cryptocurrencies are crashing. One possible explanation is that there has been a decrease in demand for cryptocurrencies, leading to a drop in their values. This decrease in demand could be due to a variety of factors, such as increased regulation by governments, a lack of institutional support, crypto companies crashing because of the bear market, or a general decline in the global economy.

Another potential reason for the crash could be speculation and market manipulation. As with any asset, the value of cryptocurrencies can be influenced by speculation and the actions of traders and investors. If there is a large sell-off of cryptocurrencies, this could lead to a crash in their values.

Will 2023 be Good for Cryptos?

One of the main drivers of cryptocurrency adoption has been the increasing acceptance by mainstream financial institutions and businesses. Major companies such as PayPal and Visa now offer cryptocurrency payment options, and traditional financial institutions are beginning to offer cryptocurrency investment products. This increased acceptance and integration into the traditional financial system has helped to increase the credibility and stability of cryptocurrencies.

Another factor contributing to the growth of cryptocurrencies is the increasing adoption of blockchain technology. The decentralized, secure nature of the blockchain has made it an attractive solution for a wide range of industries, from supply chain management to voting systems. This increased adoption of blockchain technology is likely to drive further growth and adoption of cryptocurrencies.

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