Cryptocurrency: Is a Rebound in Bitcoin and Ethereum Prices Coming in 2023?

 

Will Bitcoin and Ethereum prices stagnate, sink or rebound in 2023?

One key question that will help answer this is whether or not institutional investors will enter the market in a big way in the next few years. Currently, there are a few institutional investors in the space, but they are mostly limited to hedge funds and venture capitalists. If we see more institutional investors, such as pension funds and endowments, enter the market, that could provide a boost to prices.

Another key question is whether or not there will be another bull run in the next few years. The last bull run was driven by individual investors, and it's unclear if that will happen again. However, if we do see another bull run, it's likely that prices will once again reach new all-time highs.

In the short-term, it's hard to say what will happen with prices. However, in the long-term, it seems likely that we will see higher prices, as more institutional investors enter the market and there is another bull run.

With a loss of more than half their value, one could argue that these cryptocurrencies can’t recover. But when you zoom out and look at the overall picture, things aren’t that bad for bitcoin and ether, despite what transpired this year.

Let’s look at how significant crypto and global events from this year affected the two biggest cryptocurrencies.

So the question on everyone's mind is: will the crypto market rebound in the next few years? And if so, when?

What Is Driving the Crypto Market Down?

You're likely wondering why the crypto market is down so much this year. There are a few key factors that are driving it down.

For one, the Securities and Exchange Commission (SEC) has been cracking down on initial coin offerings (ICOs). In fact, they've brought a number of enforcement actions in 2019, including one against the founder of Telegram. This has led to a decrease in both the number and value of ICOs.

Another reason is the Bitcoin price crash. Bitcoin hit its lowest point in December 2020 since its inception, and Ethereum followed suit. The reason for this slump is still up for debate, but many believe that it's due to regulatory uncertainty and the increased scrutiny from governments and financial institutions.

However, some experts are predicting a rebound in both Bitcoin and Ethereum prices in 2023. They cite key catalysts that will propel these prices forward, such as increasing institutional investment and the development of new use cases.

Will Bitcoin and Ethereum Prices Rebound in 2023?

Experts are torn on whether the crypto winter will prolong or not. But what is for certain is that Bitcoin and Ethereum experienced a drastic pullback in 2022.

The global crypto market capitalization, which makes up the total value of all crypto assets (including stablecoins and tokens), has fallen roughly 64% from $2.2 trillion to about $797 billion year to date, according to CoinMarketCap. This staggering number only further emphasizes the point that the crypto market is in a bearish state.

However, there are some who believe that the worst is over for Bitcoin and Ethereum, and that prices will rebound by 2023. Thomas Lee, co-founder of Fundstrat Global Advisors, is one such analyst. He predicts that Bitcoin will rebound to $15,000 and Ethereum will rebound to $1,900 by the end of 2023.

What will happen with the prices of Bitcoin and Ethereum in 2023 remains to be seen. But it's clear that there is a lot of speculation - and uncertainty - surrounding the future of cryptocurrencies.

What Other Cryptocurrencies Are Worth Considering?

It's not just Bitcoin and Ethereum that could experience a rebound or price stagnation in 2023. There are a few other cryptos worth considering. Here are five to watch in 2023:

- Litecoin (LTC): This digital coin has historically been very volatile, but could be a possible beneficiary of a rebound as investors look for alternative coins to Bitcoin.

- Cardano (ADA): This open-source platform has been on the rise recently, and is expected to continue to experience growth in 2023.

- Polkadot (DOT): This is the go-to platform for decentralized finance (DeFi) applications, and its price could soar if the DeFi trend continues.

- Chainlink (LINK): The blockchain oracle project still has plenty of room to grow, and could benefit from increasing adoption from users and developers.

- XRP: Although the future of this cryptocurrency remains murky due to its legal battle with the SEC, it still has potential for further growth.

Factors That Could Impact Crypto Prices in 2023

The cryptocurrency market is never certain or predictable - that's why it's an incredibly volatile market. In the coming year, there are three main factors that could influence Bitcoin and Ethereum prices.

The first factor is economic policy. Governments have the power to influence crypto prices by introducing new regulations or restrictions on digital assets. For instance, if a government decides to ban cryptocurrencies, this could cause a huge dip in crypto prices.

The second factor is investor sentiment. If there is a high level of optimism in the markets, investors may be more inclined to buy crypto assets which could drive up prices. If sentiment takes a turn for the worse and people start to sell their crypto assets, then prices may fall drastically as well.

Finally, new technologies can also have an impact on crypto prices in 2023. For example, if new blockchain applications are released that make cryptocurrencies easier to use and more accessible, prices could rise as demand increases for those coins. Alternatively, if existing projects fail to deliver on their promises or get bogged down by bureaucracy, then prices could take a hit in 2023.

Strategies for Investing in Cryptocurrency

If you’re looking to invest in digital currency, it’s important to understand the different strategies. One strategy is to focus on holding and buying the dips. This could involve buying either Bitcoin or Ethereum, since they have proven their resilience through previous market crashes.

Another strategy is to take a more diversified approach, selecting both Layer-1 and Layer-2 blockchains and tokens, excluding Bitcoin and Ethereum. These alternative blockchain networks can be useful for participating in various DeFi activities, offering potential traders an opportunity to make gains from the competitive markets that are available outside of the two major coins.

Finally, it's always prudent to do your own research before investing in any cryptocurrency as there could be some coins with less risk that may also provide a greater return when compared to other assets. Analysts even predict that Ethereum will reach $12,000 by 2025 which could provide leverage for future investors. With all these factors considered, it's clear that a potential rebound in digital prices is not far off.

Conclusion

So, when will the crypto market rebound?

It's hard to say. Some experts are predicting a rebound in 2023, while others believe that the market won't recover until 2025 or later.

What we do know is that the crypto market is incredibly volatile, and prices can change rapidly. So if you're thinking of investing in Bitcoin or Ethereum, it's important to do your research.