Our Top 6 Crypto Predictions for 2023

Is the crypto market finally ready to break out of its volatile bearish cycle? We’ve reflected on the state of the cryptocurrency industry as we come to the end of 2022, and have put together our top 6 crypto predictions for 2023! We are expecting big things for everything Web3 in the year to come!

Post the FTX crisis, the plummet in price and the Crypto Winter we have been having in 2022, our analysis suggests the market is due for a change of cycles.

For months we have been in a Markdown Phase but BTC had extensive periods of sideways price action from June to early November, usually indicating the kind of stability that is expected prior to the start of the next crypto cycle and the Accumulation Phase.

Of course, that sideways action was ruined by the events surrounding the collapse of FTX but whether or not we have seen the bottom, it's our view that this is triggering the last shake-up of the market before we start seeing positive signs coming into 2023.

As we have seen time and time again, it's when the fear and greed index is at extreme fear, sellers have exited the market and the general public has given up on the crypto market, that the bounce usually comes.

We very much hope that these are the signs we need to start 2023 with a crypto bull run!

Having said that we first need to set some expectations:

1) These are just our personal views and should not be deemed financial advice. We have been wrong just as much as we have been right over the years;

2) Cycles and charts give indications of trends but no trend is 100% accurate;

3) Crypto is extremely volatile and when we couple that will external factors like the FED, war and crazy FTX-like events, Crypto price action is extremely hard to predict in the short term.

Now that we all have context, let's talk about our crypto predictions for 2023.

1. Bitcoin Price Prediction - Mass BTC Adoption?

We are currently (as of late 2022) in the Markdown Phase (aka Crypto Winter), which means that the average price across the whole cryptocurrency market is down, including Bitcoin's price. This means that crypto investors in general are hitting those "extreme fear" stages where a large portion are exiting. This is leading many to be extremely bearish with their bitcoin price prediction.

We believe that 2023 will see us move into the Accumulation Phase, where prices will start to rise again. This will be driven by an influx of institutional investors and mass adoption of BTC.

Our Bitcoin price prediction is that, assuming we do indeed hit the next phase, BTC should be aiming for a base price of around that $40,000 USD mark, where it should hold a strong support. If conditions are right, we may even see Bitcoin's price hit new all-time highs above the $70,000 USD mark.

If this comes true, as certain financial experts are predicting, it will do because of two key elements:

1) With the fall of FTX, many are looking at Bitcoin as the true decentralised cryptocurrency.

2) With a potential financial crisis on the horizon and fiat currencies becoming more and more inflated, Bitcoin is seen as the digital gold and something that will hold its value much better compared to conventional money.

We are very bullish on BTC and although we don't think a 6 figure bitcoin price prediction will happen in 2023, we do feel as though the digital currency will make such strides at some point in the near future (next few years).

With a potential financial crisis on the horizon and fiat currencies becoming more and more inflated, Bitcoin is seen as the digital gold and something that will hold its value much better compared to conventional money.

2. Bitcoin ETFs becoming Mainstream?

The arrival of Bitcoin ETFs (Exchange Traded Funds) could be a massive catalyst for both the price and mass adoption of Bitcoin in 2023.

While crypto ETFs have been on the rise since 2021, they still represented only a small fraction of the total market cap as of 2022. However, with more established investors entering the fray, it’s very likely that the crypto ETF investment option will take off in 2023.

If this happens then we could see an influx of institutional money entering the market and prices jumping up significantly as a result.

3. The Ethereum Flippening - Delayed Response from the Merge

Many believe that Ethereum still hasn't had its price pump due to the merger. Crypto experts believe that it will operate much like Bitcoin Halving, where there will be a small push to the upside, followed by a dip (where we are now), before the more significant bull run.

If this is indeed the case, many believe that we will see Ethereum overtake Bitcoin as the top market cap within the crypto industry. This is what people are deeming as the "flippening".

If this does indeed come to fruition next year then we should expect Ethereum's price to rise substantially in 2023.

4. Eradication of low-quality Altcoins & NFTs

The crypto space has become increasingly flooded with low-quality Altcoins and NFTs (Non-Fungible Tokens). This means that many investors have been unable to differentiate between the legitimate investments out there and which are simply overhyped projects with no real value.

We believe that in 2023 we will start seeing a move away from these low-quality projects, with investors gravitating more towards the ones that are actually delivering something of value. This could increase the overall quality of investments out there and also drive up prices.

If the overall market sentiment does indeed share such thoughts, we will see the price of Bitcoin and Ethereum increase substantially, we will see old Altcoin and NFT projects go to zero.

That's not to say we won't see new Altcoins and NFTs hit the market but we believe (and hope) that these will be a new breed, focusing on real products solving real world problems and delivering true utility.

5. Regulations around Exchanges & Stablecoins

2022 has not just been the year of the bull, we have seen the fall of some giants within the world of Crypto, namely Luna, UST and most recently, FTX.

These mammoth collapses have challenged us to rethink what cryptocurrencies and Web3 platforms we deem to be safe. It's also pushing financial experts to take a good hard look at regulations.

Exchanges are by far the most popular entry points in the crypto space, so any regulations made around them will have far-reaching effects.

With more governments looking to regulate cryptocurrency exchanges and stablecoins, we could see a more transparent and secure trading environment - which would be beneficial for both small and large investors alike.

We expect that this regulation will come with high standards surrounding AML/KYC, as well as procedures for tracking money laundering activities. This should significantly improve security levels across major crypto exchanges, making it harder for criminals to use cryptocurrencies in their illegal activities.

In addition to this, we believe that such regulations will help legitimise the cryptocurrency industry as a whole due to increased transparency and trust from people. If the regulation is done right, it could lead to a significant increase in crypto adoption in 2023 and beyond.

However, we are also urged to caution said regulations, as there are concerns across the industry that certain policies have in the past just been designed to benefit governments and big businesses rather than the average investor.

As true Web3 advocates, whatever the regulations are for our new blockchain technologies, we don’t want to see true decentralisation stifled.

With more governments looking to regulate cryptocurrency exchanges and stablecoins, we could see a more transparent and secure trading environment - which would be beneficial for both small and large investors alike.

6. The Rise of Web2.5

While analysts expect low cap Altcoins, for example, to disappear, they also predict a growing interest for integrated Web2/Web3 projects. These are what we are deeming Web2.5 projects.

Web2.5 projects are basically decentralised applications (dApps) that can still interact with Web2 technologies like cloud services, databases and more. Such applications could be built on layer 2 solutions. This would mean that users could access the benefits of blockchain technology without having to worry about scalability issues or high fees associated with traditional public blockchains.

We expect this trend to continue into 2023 as we see developers focus their attention on creating dApps that can leverage the strengths of both Web2 and Web3 technologies. This should open up a world of possibilities in terms of what new products and services could be created, leading to increased adoption of web3 technologies amongst the masses.

Furthermore , whatever the regulations are, Web2.5 projects will be able to provide a much more secure and transparent way of conducting financial transactions compared to what we have today. This would allow investors from all over the world to get access to better investment opportunities and possibly make bigger profits in the process.

So do our 6 crypto predictions make us bullish or bearish for 2023?

Well, the future is always uncertain but if our Bitcoin price prediction comes true, we will see the average price of all cryptocurrencies increase. This will fuel a change of market phase and overall sentiment towards the bull.

We can also expect more crypto projects to adopt Web2.5 standards, leading to further innovation and greater adoption of blockchain technologies in the years ahead.

We can therefore conclude that while we should all be cautious when it comes to investing in cryptocurrencies, 2023 looks like a favourable period for those looking to profit off digital assets such as Bitcoin and other altcoins.

So start to brush off those bears and get ready to enjoy those tasty gains that our crypto predictions for 2023 could bring!