What to expect from the crypto market in 2023?

From the moment cryptocurrency was announced in 2009, its future potential became obvious. Nowadays, cryptocurrency occupies an important place in the financial market and is popular with a huge number of people.

Digitalization of the world has led to the fact that it has become much more profitable to use digital money than to pay with paper money. In addition, there are many ways in which you can make profit from digital funds, such as cryptocurrency. For example, crypto trading can become a lucrative way of paying your bills. While a crypto lend help you with this by providing the free liquidity on your coins. Crypto loans can be received from the various crypto lending platforms. The proper research will help you to choose the right one.

For example, you have bitcoin, which you want to hold for the future growth, then you can loan btc in return to stablecoins as the loaning fund. This way you continue to keep your Bitcoin and have the stablecoins for the trading activities. After performing the profitable trade you can get back your bitcoin in any moment you want.

Let’s talk about the spread of cryptocurrency and what its future holds.

Past of Cryptocurrency

The first virtual currency — bitcoin — was introduced to the world in 2009 by Satoshi Nakomatto. This is a pseudonym of a person or several people who developed the protocol of the first cryptocurrency and the software for its implementation. It was never possible to reveal the identity or identities of the creators of the cryptocurrency. 

People for a long time looked closely to cryptocurrency, the idea of virtual money was quite strange and did not inspire confidence. Nevertheless, gradually the new currency was gaining popularity and increasing its value. At the beginning of its existence, for one bitcoin you could have a meal in a restaurant, but now with this currency you can already buy a small apartment or a house in the suburbs. This rapid growth has caused the increased demand and an interest in the cryptocurrency.

blank

As soon as bitcoin appeared in circulation, its rate was constantly changing. For example, in 2010, American Laszlo Hanech bought two pizzas for 10 thousand bitcoins — it was the first exchange of virtual money for a real object. A few years later, the rate of electronic currency rose to $1,000 per unit, and now bitcoin is worth tens of thousands.

Over its history, the cryptocurrency has experienced several ups and downs. And in 2022 another cryptocurrency winter has arrived.

Cryptocurrency Collapse in 2022

Historically, cryptocurrency market dynamics have often been outside the context of the traditional economy. The current crisis, on the contrary, has demonstrated its inclusion in global processes. In the spring of 2020, when the WHO proclaimed the COVID-19 pandemic, the stock and cryptocurrency markets reacted to the alarming news in the same way — by falling. However, this process was stopped by the Federal Reserve, which launched a quantitative easing program. It was followed by others. So, even in the face of the collapse, people were still getting profit from lending crypto and trading.

The collapse of cryptocurrencies was also helped by internal market events. One catalyst was the collapse of Terra (UST), which was one of the top 10 cryptocurrencies before the collapse, and its supporting token Luna.

Another blow to the market was dealt by popular crypto-bank Celsius, which suddenly suspended customer withdrawals in the spring, explaining it by “extreme market conditions.”

It is impossible to assess the global losses of institutions, businesses and retail investors from the collapse in the cryptocurrency market. First, there is no consensus among professional participants and market analysts on how many coins exist and how much money is invested in them.

It is important to understand that the financial market is like a living organism. It is subject to price fluctuations both in plus and minus. The high volatility of cryptocurrencies allows for quick and large profits when buying and selling them speculatively, but there are also risks.

What to expect in 2023

blank

Is crypto the future? Analysts and economists, when talking about cryptocurrency, traditionally give a more emotional forecast than for the stock market, based primarily on their fundamental affiliation with the number of crypto skeptics or crypto-enthusiasts. The former are always waiting for bitcoin to crash, while the latter are predicting a new record for it.

The cryptocurrency market continues to be feverish in the fall of 2022, but nevertheless, the cryptocurrency market remains a place that can profit through trading. NFT, meta-vendors and bitcoin ATMs are some of the biggest crypto trends to watch out for next year.

In 2023, participants in the crypto community may see an increase in activity related to the regulation of the digital asset market. Authorities can no longer ignore the growing interest of market participants in cryptocurrencies.

One of the most promising opportunities for traders is crypto loans. If you need a certain coin to trade, you can use a cryptocurrency marketplace and borrow any cryptocurrency, including Stablecoins, against collateral. You can use a currency that you hold, but don’t want to sell as collateral. In this case, the crypto collateral loan will be subject to all changes of the market, and in case the exchange rate rises, you will take even more than you left.

Conclusion

Cryptocurrency and information technology are called one of the most promising industries, which will not stop developing in the coming years. That is why this sphere is so attractive to investors. The cryptocurrency market cannot be called stable, but there will always be an opportunity to profit from it.

Huynh Nguyen

Daily Nation Today is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – admin@dailynationtoday.com. The content will be deleted within 24 hours.

Related Articles

Back to top button