Here Are Some Predictions For Cryptocurrencies In 2023

This year, the crypto space was saddled with numerous losses, and a handful of businesses existing in the space packed up. The value of leading cryptocurrencies continued to tumble as more and more investors lost interest. Also, there was the issue of regulation which has been a major factor since cryptocurrencies started to show potential for cross-border payments, investments, and even fraud. Governments, in one way or the other, had a role to play in how these cryptocurrencies turned out. 

In 2022, there were a number of predictions for cryptocurrencies. While some of them happened, others did not or were not exactly as predicted. But these predictions did quite a good job of telling investors and enthusiasts what to expect from the cryptocurrency space.
In this article, we have curated a handful of what to expect for cryptocurrencies in 2023. They are;

Morbius Capital Partners LLP’s Founder Predicts Bitcoin Slipping To $10,000
Mark Morbius, veteran investor and founder of Morbius Capital Partners LLP, predicts the world’s biggest cryptocurrency Bitcoin, falling to as low as $10,000 in 2023. His prediction is backed by Bitcoin’s breaking of technical support levels of $18,000 and $17,000. The experienced investor had previously and accurately predicted Bitcoin’s drop to $20,000 this year. His prediction also takes into account factors such as rising interest rates and a generally tighter monetary policy from the US Federal Reserve. “With higher interest rates, the attraction of holding or buying Bitcoin or other cryptocurrencies becomes less attractive since just holding the coin does not pay interest. Of course, there have been a number of offerings of 5 percent or higher interest rates for crypto deposits but many of those companies offering such rates have gone bust partly as a result of FTX. So as those losses mount people become scared of holding the crypto coin in order to earn interest,” he said. According to Mark Morbius, the boom which the crypto industry experienced had a direct correlation with the Fed’s “printing machine working overtime so that money supply in USD rose by 40 percent plus in the last few years. So there was abundant cash to speculate on crypto coin.” He went on to further explain that “Now as the Fed is drawing back that cash the ability for people to play in the market becomes much more difficult.”

Regulation Is Expected To Become Even Tighter
In 2023, regulation of the crypto space is expected to become even tighter. The battle against regulation is expected to reach its peak as the crypto industry is expected to fight the parts of the regulation that are a threat to decentralization. 

More Losses, And Even More Losses
As if the losses experienced in 2022 aren’t enough, there is the expectation of losses in the crypto space resulting from hacks, the closure of funds, and more companies falling apart following the major collapse of FTX. The crypto industry will require time to heal as the contagion it is facing is quite vast. 

NFTs Are Expected To Step Away From The Shadow Of Cryptocurrencies And Lead Ahead of Them
No one needs a crystal ball to see that NFTs outperformed cryptocurrencies this year. In 2023, NFTs are expected to stand on their own, away from the shadow of cryptocurrencies, and lead ahead of them. According to Jamie Burke, CEO, and founder of Outlier Ventures, “The sustained high-risk appetite in NFT-funding in 2022 is a strong indicator that it will be one of the first sectors to recover next year. Throughout the past year, we were already beginning to see major NFT investments from major Web2 brands [Starbucks and Disney] and across Web3. This shows no sign of stopping in 2023. Brands will continue to flock to NFTs.”

The Disaggregation Of Big Exchanges
According to Haseeb Qureshi, the managing partner at Dragonfly Capital, big exchanges are expected to break down into smaller exchanges to avoid another FTX collapse. “Exchange stack gets disaggregated – we see custody, brokerage, and exchange/price discovery get broken out into different players, just like in [traditional finance]. This makes it impossible for another FTX to happen,” he said. “When trust is low, incumbents consolidate. Coinbase, Binance, Uniswap will likely gain market share in aggregate, as people are less likely to trust smaller and weaker players. Network effects get stronger,” he said in what was a parallel prediction.

Web3 Is Expected To Get Fashionable
According to Cathy Hackl, Chief Metaverse Officer at Journey, “Fashion will continue to lead the way when it comes to Web3 adoption. We will see further collaborations between Web3 personalities and consumer and luxury brands that want to explore new commerce models and customer touchpoints.” She also added that “With the rise of generative AI, we might see blockchain play a significant role in helping us to distinguish between content created by AI and content created by humans.”

The Rise Of More Central Bank Digital Currencies
In 2023, more governments across the world are expected to either begin testing for indigenous central bank digital currencies or make progress with their ongoing tests. Central bank digital currencies are fast becoming a thing and although they are different from cryptocurrencies, they cannot be entirely ignored.

Bitcoin May Become Truly Adopted Globally
Although cryptocurrencies have suffered more than a handful of setbacks, cryptocurrencies like Bitcoin continue to win their way into the hearts of many people. Across the world, and especially in a fast-growing continent like Africa, Bitcoin continues to meander its way into the hearts of individuals, and entrepreneurs who are looking to build something out of the cryptocurrency. According to Alex Gladstein, the Chief Strategy Officer of the Human Rights Foundation, who had just returned from a Bitcoin conference in Ghana and has met with Bitcoin entrepreneurs and leaders from Cameroun, Congo, Somalia, etc., “They’re all just building on bitcoin. It’s legitimately amazing.”According to him, this is why he believes that “global adoption is probably the number one story for next year.”

A Shift To Other Interests Outside Of Cryptocurrencies
This year, investors suffered huge losses as a result of several factors. Businesses wrapped up and in 2023, a shift to other interests outside of cryptocurrencies (maybe to NFTs, Web3, the metaverse, etc.) is expected to happen.