2022 was a bearish year for cryptocurrencies, but also for tech stocks and other investments. The macro developments are heading into a downward spiral. Now that the new year 2023 is ahead of us, investors need to understand how to position themselves in case the market turns bullish. Many analysts already predict that the year 2023 would be a turning point for cryptos. What to expect in the year 2023? Let’s lay out some crypto prediction ideas.
Crypto 2023: What are they?
Cryptocurrencies are digital or virtual currencies that use cryptography for secure financial transactions. They are decentralized systems that allow for secure payments online without the need for a central authority, such as a bank or government. Bitcoin was the first and most well-known cryptocurrency, but there are now thousands of different cryptocurrencies with various functions and features.
Cryptocurrencies use blockchain technology, which is a decentralized, digital ledger of transactions that is distributed across a network of computers. This allows for transparency and security in the financial transactions, as the data is stored on multiple computers and can be verified by the network. Transactions are recorded in blocks, which are then added to the blockchain in a linear, chronological order. This makes it difficult for transactions to be altered or tampered with, as any changes to previous blocks would be detectable and would require the consensus of the network.
The metaverse is a virtual world or shared space that is created and maintained by a network of users, typically through the internet. It is often depicted as a virtual reality or augmented reality world that can be accessed and interacted with through a variety of devices, including computers, smartphones, and virtual or augmented reality headsets..
Overall, the relationship between cryptocurrencies and the metaverse is an emerging and evolving area of technology and innovation, and it is likely that we will see more developments in this area in the future. Both industries are set to revolutionize the way we interact and transact with other users and businesses.
How did Cryptos perform in 2022?
In 2022, the cryptocurrency market saw one of its worst years. The average decline in cryptocurrency prices year to date is 70%. There are two main causes for this decline:
- An overdue correction: The crypto market needed a break after two years of intense bullishness. As a result, prices fell.
- Bad fundamentals: In 2022, cryptocurrency exchanges including FTX crashed. As a result, most investors sold their shares to lock in profits, leaving other investors in the dust. This caused FUD in the cryptocurrency market.
Crypto Prediction: Bitcoin Price reach 70K?
Once the market goes back to its uptrend, Bitcoin can then go back to eye its previous all-time high price of around 70K. In previous crashes, it took Bitcoin around 6 months to break from its consolidation and reach a new all-time high price.
Bitcoin’s worse case would be to reach the previous all-time high price of 70K instead of breaking an all-time high price. However, we await for the downtrend to end first.
Crypto Prediction: Ripple wins SEC Lawsuit?
Ripple was supposed to solve his lawsuit with the SEC (or at least see a resolution in sight) buy Q4 of 2022. However, things dragged on which caused the process to be extended till 2023.
Anaylsts expect that the lawsuit should see a resolution around Q1 of 2023 now. If things go in favor or Ripple, XRP can see a huge price increase. On the other hand, the FTX findings stated that the FTT token was a security. This created fear among Ripple investors, as this might be taken as a precedent in the Ripple case.
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Source: https://cryptoticker.io/en/crypto-prediction-bitcoin-to-70k-and-ripple-wins-sec-lawsuit-in-2023/