According to cryptocurrency expert Neil Patel, Bitcoin (BTC) will lead the next bull market. The expert expects the sharding of the leading altcoin Ethereum to be delayed, which will increase the speed. Also, the expert says a clear regulatory framework is coming.
After a bad year for the entire industry, what’s next for 2023?
cryptocoin.comAs you follow, 2022 has been a turbulent year for the crypto market. Now many crypto investors are preparing to turn this turbulent page for the industry. Cryptocurrency prices soared in 2021. Also, the entire market approached $3 trillion in November of last year. However, a series of high-profile explosions have shed light on just how risky the industry really is. It also caused the market to lose more than two-thirds of its value this year.
Should investors abandon their investments in digital assets? Only you can answer this question, given your personal risk tolerance, time horizon, and understanding of the cryptocurrency industry. However, you can be sure that the new year will most likely be full of important developments. Without further ado, here are the top three forecasts for the cryptocurrency market in 2023.
Bitcoin will lead the crypto bull market
The Federal Reserve has signaled that it may slow the pace of future rate hikes, which could be bullish for all risky assets. So if cryptos rebound at some point next year, I think Bitcoin (BTC) will take the lead.
Bitcoin is the oldest and most valuable cryptocurrency with a market cap of approximately $330 billion. BTC is probably the first glimpse into the asset class for both individual and institutional investors. Capital flowing out of the market this year expects things to turn around. Also, it is possible for new investors who do not have a position in any crypto to flock to Bitcoin in a recovering market. The fact that encourages such activity is that it is incredibly easy to buy Bitcoin today.
Again, it all depends on the Fed’s policy moves, the macroeconomic picture, and overall sentiment towards digital assets. However, as the markets bottom out and prices start to rise, I’m sure Bitcoin will be one of the first to rise.
Another delay for Ethereum
This year has been a monumental one for Ethereum (ETH). The completion of The Merge transitioned the network to Proof-of-Stake (PoS), which requires 99.95% less energy and lays the groundwork for future scaling. The upgrade has earned the cryptocurrency community appreciation. However, this upgrade was overdue. In fact, most developers have been waiting for this event since Ethereum made its debut in 2015.
The next phase in Ethereum’s development cycle is the introduction of sharding, a feature that will spread the network load across the Blockchain and provide significantly faster throughput. Depending on how new the blockchain technology is and the uncharted territory Ethereum is in, I suspect sharding will be delayed. It was supposed to be released in 2023. However, it now says ‘2023 to 2024’ on Ethereum’s official website.
Vitalik Buterin, co-founder of Ethereum, has added another step to the network’s development pipeline, called The Scourge. Including Merge, there are now six different stages Ethereum must go through for it to be fully completed. Given the insane complexity of this new technology, I see the possibility of more delays and perhaps more development stages added to the mix.
Stricter cryptocurrency regulations on the horizon
As I noted in the introduction to this article, a number of highly significant industry booms, including the failures of Celsius, Voyager, Terra Luna, and FTX, show how urgent the need for clear and comprehensive regulation is. These adverse events shed light on how complex, messy and incomprehensible many major initiatives in the industry are. However, the goal of lawmakers should be to increase trust and transparency as well as protect investors.
As a result, a tighter regulatory stance by the US could be a positive development, especially for Coinbase (COIN), a locally based company that has been publicly traded since April 2021. It did not set up headquarters in a foreign domicile like the crypto exchange FTX did. Coinbase currently operates within existing securities regulatory guidelines. And this should strengthen its position as a reliable brokerage firm and exchange.
However, a series of regulations from various institutions will not cut it. If the US is to be at the forefront of cryptocurrencies on the global stage, it needs to provide a unified regulatory framework. This will provide the necessary foundation for future growth of the industry.
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