Cryptocurrencies have been a rollercoaster ride over the past decade. From all-time highs to devastating crashes the crypto market has seen it all. The excitement around cryptocurrency began in 2017 with Bitcoin reaching its all-time high. Since then, there have been more ups and downs for digital assets. With so much market uncertainty, can we expect a new bull run for cryptocurrencies?
Some analysts believe that or 2023 may be the year where crypto enters another bull market as investors become more confident in the technology behind digital assets and their potential to revolutionize finance. In addition, is gaining wider success due to the growing popularity of digital assets. The importance of using this tool has been highlighted by its ability to collect thousands of data points and present them in an easy-to-read format.
Factors to look for in the 2023 crypto market
Increased Institutional Adoption
Increasing institutional crypto adoption is one of the most significant signs that we’re entering another bull market. Currently, numerous large financial institutions have already begun to dip their toes into the waters of cryptocurrency trading. The trend will likely continue as more companies recognize the potential benefits of investing in digital assets. Some banks have even started offering services like deposit accounts with direct access to cryptocurrencies, further driving adoption rates among institutional investors.
Emerging Blockchain Platforms
As blockchain technology evolves, two emerging platforms are gaining traction in the crypto market- Ethereum and EOS.
Ethereum is a platform that enables developers to build decentralized applications and smart contracts using its native cryptocurrency Ether (ETH). The platform’s strong development community makes it one of the leading blockchains for decentralized finance (DeFi) projects and applications. EOS is another blockchain network that offers developers a range of features such as high throughputs, scalability, low transaction fees, and support for parallel processing.
Widespread Public Awareness
More people are trading cryptocurrencies regularly and looking for ways to invest or use them as payment methods. Increased public awareness indicates that crypto is accepted as a legitimate form of currency, which could lead to more companies receiving it and thus, more liquidity in the market leading up to 2023.
Regulatory Clarity
Cryptocurrency has been a notoriously challenging asset class to regulate due to its decentralized nature and lack of governing body. However, if more countries introduce clear laws and regulations surrounding cryptocurrency exchanges, trading, and taxation, it would signal a shift toward greater acceptance of digital assets. It could help normalize the industry and encourage mainstream participation from institutional investors.
Growing Trading Volumes
From 2018 to 2019, crypto trade volume has grown, which has only continued into 2023. An increase in trading volumes can indicate investor interest and confidence in the market. When more people are interested in buying and selling crypto assets, it demonstrates that the market is growing more mature. This growth in crypto trade volume is a positive sign that the market may be ready to enter another bull run in 2023.
However, the crypto market is ever-changing, and staying up-to-date on its movements is essential. Thus, investors should monitor the market with a crypto tracker that helps them understand real-time market situations and make informed decisions.