Many well-known crypto community members have been making predictions on what would happen in the 2023 market during the bear market of 2022. Listed below are some of the predictions made by these members for 2023.
Vitalik: Crypto has some opportunities in 2023
Co-founder of Ethereum Vitalik Buterin thinks there is still much room for innovation. According to Vitalik Buterin, co-founder of Ethereum, three “huge” prospects for the cryptocurrency still need to be realized: universal wallet adoption, inflation-resistant stablecoins, and website logins using Ethereum.
In an interview with Bankless co-owner David Hoffman, Buterin discussed his predictions for the cryptocurrency market in 2023 in response to Hoffman’s voiced concern that the “adoption wave” for decentralized applications (dApps) has already gone and that there is “less opportunity” for programmers to come in and develop new decentralized applications.
Buterin, in contrast, criticized the “limbo moment” Hoffman alludes to, first asserting that more developments in wallet infrastructure are needed to make Bitcoin more user-friendly for regular customers and to ensure that it can handle billions of users.
“If you can design a wallet that a billion people will use—huge that’s potential,” said the co-founder of Ethereum.
Second, Buterin said that the industry would undergo revolutionary change by creating a stablecoin that can resist any situation, both on-chain and in the more excellent macroeconomy. Buterin didn’t offer any specific instructions on how to do this.
Finally, Buterin said that any technical developments that enable Ethereum to seize the login authority presently exercised by Facebook, Google, Twitter, and other centralized monopolies would eventually allow Ethereum to extend its market dominance on web-based applications. Buterin recognized that it was becoming more difficult to fill gaps in the market as the industry developed and competition grew.
The Ethereum co-founder has spent the last several weeks teaching people about the cryptocurrency industry and providing advice, along with his hopeful perspective on the years to come.
Mike Novogratz’s forecast
The CEO of the Bitcoin investment company Galaxy Investment Partners is Novogratz. One of the few cryptocurrency businesses mandated to declare financial results is Galaxy Digital Holdings Ltd. Cryptocurrency supporter Mike Novogratz revised his forecast that Bitcoin will reach $500,000 in five years in light of the Federal Reserve’s increasing interest rates.
It will, but “not in five years,” Novogratz stated in a past interview with Bloomberg Television. Jerome Powell, the chair of the Fed, realized “his omnipotence in central banking,” which was the most critical change. According to Novogratz, the CEO of Galaxy Digital, Bitcoin has decreased this year, comparable to most risk assets, since the Fed is raising rates to combat inflation.
The Bitcoin price dropped more than 60% this year, hitting roughly $17,000. The fallout from the FTX exchange’s failure last month exacerbated losses in the bitcoin market. The collapse of FTX, along with those of the hedge firm Three Arrows Capital and lender Celsius Network, is “certainly damaging the overall faith in crypto, but that also shall pass,” he added.
Novogratz said that Galaxy Digital is considering making “some modest transactions” to buy cheap, distressed crypto assets. He said that as a precaution, Galaxy has reduced its holdings on cryptocurrency exchanges and has begun paying particular attention to exchange reserves after some of its assets were stranded on the FTX market.
The forecast for Bitcoin from Cathie Wood
At the end of the year, the price of bitcoin is around $16,800, down from nearly $19,500 on the eve of the FTX crisis. If the impacts of FTX’s bankruptcy keep spreading, BTC has further room to plummet.
Even Cathie Wood, CEO of Ark Invest and a well-known advocate of Bitcoin, concedes that the past events in the crypto space may soon cause big financial institutions to stop investing in cryptocurrencies.
The one thing that will be delayed, according to Wood, who has maintained her BTC forecast of $1 million by 2030, is “possibly institutions stepping back and simply questioning, “OK, do we understand this?”
What are analysts’ opinions?
Given that larger markets are struggling and the crises and scandals of 2022 have badly harmed crypto’s reputation, another decline to the $10,000 threshold for BTC in 2023 may be near.
JPMorgan Chase & Co. analysts agree that more work must be done before the bottom. The bank predicts that the floor for Bitcoin will be approximately $13,000 owing to “a cascade of margin calls” made throughout the market due to recent events.
Another measure strategists use to forecast how low prices may go is the cost of generating Bitcoin. Although the production cost is now $15,000, the JPMorgan team stated that it “is projected to revisit the $13,000 low seen throughout the summer months.”
