After 60% fall .. What 2023 bears for Cryptocurrencies?!‎

Investors are wondering about the cryptocurrency investment outlook for 2023 after a 60% drop in bitcoin this year, and how it holds up in times of uncertainty.

Bitcoin story:

The year 2022 saw the story of two bitcoins in 2022. One of them was the hedge against uncertainty – which it demonstrated when Russia waged war on Ukraine at the beginning of the year, and after the downfall of FTX, which was known as one of the biggest corporate scams. Finance in American history, which shook the markets last month.

While the other was the most risky among the risky assets, this was reflected in the movements of technology stocks. This has been the trend for bitcoins for most of the year, which has been confusing and disappointing to some seeking a more stable asset in a turbulent market.

According to a CNBC report, Bitcoin may continue this trend in the new year, at least in the first halving. But investors and strategists will be watching with concern, as Young Yu Ma, chief investment strategist at BMO Investment Fund, said, “It will not be an easy year for the economy, and stock markets will eventually pass through it, but there will be some volatility.”

Pointing out that there is a lot of interest in bitcoin trends after the correction that it witnessed in the wake of the collapse of FTX, and whether this experience will lay new foundations for digital currencies.

Stable markets:

The economist noted that there has been a significant price correction, but there is more institutional interest in digital assets than ever before. Pointing out that the market will be more balanced and realistic, more clear and with more stable capital. This will not happen overnight, but investors want more than ever to see a market for cryptocurrencies driven by benefit rather than speculation.

“What this crypto winter has taught us is that we need to find some real use cases for cryptocurrencies, and that for a very long time, there has been an outflow of capital into unproductive projects,” said Kaley Cox, US investment analyst at eToro. “But I hope that in 2023, we will see some progress on this side.

In the context, Benjamin Bowdish, an analyst at Barclays, said that his team believes that “crypto assets are likely to continue to behave as assets with “beta” risk in the future.

Similarly, Alkesh Shah, a cryptocurrency and digital asset analyst at Bank of America, said crypto assets will trade in line with risk assets “over the course of 2023,” but he sees the potential for a divergence “as investors shift their focus from speculation.” To trade for the development and adoption of Blockchain and distinctive applications with utility and cash flows.

Largest sector:

For his part, Len Castleman, chief operating officer of cryptocurrency trading platform Blockchain.com, predicted that the global economic recession will keep cryptocurrency prices unchanged in 2023. While he expected major players to continue to rebound, and to take market share from platforms that left the market, Castleman also predicted an increase in “mergers and acquisitions activity” in 2023, “albeit with the necessary increased scrutiny.” After all, crypto remains the largest investment sector in 2022, overtaking both fintech and biotech, according to Pitchbook.

According to Forbes magazine, these currencies will be the best to invest in during the next year, including bitcoin, ether, D2T currency, and Binance currency.