What To Expect From the Cryptocurrency Market in 2023 Bear or Bull Run

This year, the digital asset industry experienced a difficult journey. 

The global cryptocurrency market valuation of $2.2 trillion has fallen below $800 billion. Bitcoin (BTC) and Ethereum (ETH) values have plunged by a staggering 65% and 69% on a year-to-date (YTD) basis, respectively.

However, due to high inflationary sentiments, physical gold outperformed Bitcoin significantly. This was Bitcoin's second-worst YTD performance since its inception. Meanwhile, few cryptocurrencies were able to withstand the volatility this year, although there was a clear winner.

Crypto bull run in 2023?

As per the report, BTC's recent price drop closely resembles the bear market characteristics shown in previous cycles. The 2018 bear market lasted more than 364 days, but the 2014-15 bear market lasted almost 407 days.

Bitcoin price has bottomed 376 days after peaking, but if BTC bottoms in 2023, it would be the longest drop in history. However, there are other potential triggers coming. The FTX proceedings may persuade regulators to enact stricter crypto market regulations.

Meanwhile, experts believe that this is a positive indicator related to the debut of spot BTC ETFs in the United States. This will result in a more precise categorization of tokens by the end of the year.

What can affect the crypto market?

In February 2023, the European Union Parliament will vote on the MiCA law. However, the bill's effect will be 12 to 18 months to reach the entire market. The next-in-line SEC lawsuit, Grayscale, will be heard in the first quarter of 2023.

The tightening macro situation, as well as Bitcoin's correlation to macro similarities from the previous bear market, will provide a wider opportunity to increase BTC exposure.

In 2013, the dominant trend will be low trading activity. The cryptocurrency market may appear to be more boring than in the preceding three years. According to experts, patience and long-term positioning will be crucial for investors.

BTC price to surge?

The Bitcoin price is expected to trade in a flat range this year. However, the price of Bitcoin in 2023 will be higher than the yearly opening. The link between Bitcoin and equities is projected to weaken as crypto trading volume falls.

Read also: Five Ways to Spot a Fake Non-Fungible Token (NFT) Collection