Bitwise Shares the Performance Forecast of Bitcoin and Cryptocurrencies in 2023: Rise or Fall?

Cryptocurrency asset manager Bitwise has presented a new report on the 2023 outlook for the crypto market.

“Cryptocurrency Recovery Will Be ‘U’ Shaped”

In this report, the Bitwise team presents their predictions for what will happen in the crypto market in 2023. They begin by stating that the recovery in the crypto market will be “U-shaped” rather than “V-shaped”.

They explain that crypto has historically moved in four-year cycles, with three bullish years followed by a pullback year, and 2022 fits that pattern perfectly.

As we enter the year 2023, the authors believe that crypto is well-positioned to enter a phase of recovery due to technological blockchain improvements, scaling advances, and emerging new applications.

However, they also note that recovery will not be easy as the collapse of FTX and the overall crypto credit crisis cast a deep and dark shadow over this area.

They also predict that the initial promise of crypto technology for free and extremely fast transactions will finally become reality in 2023. They say the old financial ecosystem is slow and corrupted, but cryptocurrencies have found a better way. However, no major blockchain has yet fully lived up to this promise.

The rise of Tier 2 solutions and Ethereum They believe that the combination of the planned upgrade of the blockchain should drive down the average transaction cost on Ethereum by more than 1,000%.

This could easily lead to transaction costs falling below 1/10th of a cent, and possibly below that level. According to analysts, this will have huge implications for micropayments, non-financial transactions and more.

*Not investment advice.