7 Cryptocurrency Trends for 2023 and Beyond!
Cryptocurrency is one of the hot topics among investors who want to try this relatively new concept. As crypto is a new concept, it has a lot of potential. Although cryptocurrency has experienced all-time highs and big drops, this digital currency is becoming increasingly alluring.
Everyone is curious to learn more and more about cryptocurrencies. It’s no wonder you, too, must be interested in knowing about crypto trends to get an idea about its momentum in 2023.
So, here are the top 7 trends in the crypto space that will probably continue into 2023 and beyond.
1. Cryptocurrency Regulation
To deter cybercriminals, the need of the hour is to formulate some stricter regulations to deter them. Globally, lawmakers are working on developing laws and guidelines to make investments in cryptocurrency safer.
Globally, the crypto industry will continue to work on precise regulation around cryptocurrency. Lawmakers in the US and worldwide are establishing laws and setting guidelines to make cryptocurrency safer for investors.
2021 was the year of increasing regulatory clarity in the crypto market. The bipartisan infrastructure bill to the tune of $1.2 trillion signed by the U.S. president in 2021 includes crypto tax reporting provisions. This will enable the IRS to monitor crypto activity among US citizens.
The new regulation is believed to help investors keep records of any capital gains or losses on their crypto assets. Furthermore, the new rules may make it easier for investors to report crypto transactions properly.
Although such regulatory announcements may impact the cryptocurrency price in the already existing volatile markets, many experts opine that regulation is good for the industry. Ultimately, sensible regulation is going to be a game-changer for everyone.
2. Bitcoin ETF Debuts on NYSE
In 2021, the New York Stock Exchange launched the first Bitcoin ETF. The Proshares Bitcoin-linked ETF started trading on the stock exchanges with the ticker name BITO. This development is an innovative and more conventional way to invest in crypto.
Now, investors can buy in on cryptocurrency directly from traditional investment brokerages through their existing crypto accounts, such as Fidelity or Vanguard.
However, some experts say the BITO ETF is insufficient as it may not hold the crypto directly even though the fund may be linked to Bitcoin. The fund has Bitcoin futures contracts.
Experts say that while Bitcoin futures follow the general trends of the actual crypto, they may still not track the price of Bitcoin directly. Thus, investors may want to continue waiting for an ETF that holds Bitcoin, as investing in a crypto ETF like BITO will be as risky as any crypto investment.
3. Bitcoin to Remain Under Pressure
Even after touching a high of around $65,000 in 2021, Bitcoin is expected to stay under pressure. The year 2021 started with Bitcoin valuing around $32,000. Seeing such massive gains, investors expect a bearish trend in the legacy cryptocurrency in 2023.
Some experts believe bitcoin will virtually wipe out all its gains accumulated over the past year and a half. However, some experts think that bitcoin will resume with the crypto to crack the $100,000 mark.
4. Growth of the NFT Market Expected to Continue
DeFi (Decentralized Finance) has drawn the most attention to the cryptocurrency market. NFTs offer access to decentralized funding options. This has helped artists and creators immensely by giving them more freedom in financing their creations.
The best part is that they are pretty secure with the NFTs based on blockchain technology. Besides, authenticating the ownership of the digital asset. With such access benefits, NFTs have gained popularity among artists and creators. Therefore, experts believe that the crypto market may see an increase in the valuation of the NFT market.
5. Financial Institutions Adopting Cryptocurrency Ecosystem
This is one of the most significant cryptocurrency trends, as earlier corporations and financial institutions were unsure about the entire cryptocurrency ecosystem. However, now many institutions are collaborating with the crypto market and investing in cryptocurrency.
In 2020, around $15 billion in institutional assets was invested in the crypto market. According to crypto experts, this number is expected to rise in the coming years. The data from Paypal is an indication of this rising trend. According to the data from Paypal, “The users who bought cryptocurrency with Paypal app saw twice as many logins as before Paypal allowed these transactions.”
6. Web 3.0 to Enter the Mainstream
The third version of the Internet is already making waves. Therefore, Web 3.0 must be looked out for in 2023 and beyond.
Web 3.0 will provide a sustainable solution to those businesses that want to fund their business website without depending on large corporations that own servers or charge hefty fees. One can even personalize the Internet experience by using Web 3.0. As Web 3.0 gains wide acceptance, a positive impact on cryptocurrencies linked to Web 3.0 is expected.
7. Crypto to Continue Driving the Adoption of Green Energy
Bitcoin’s demand for electricity has led to huge carbon emissions. Researchers at the University of Cambridge have calculated that Bitcoin miners have emitted almost 200 million tonnes of carbon dioxide in the cryptocurrency’s short history.
Due to their negative impact on the environment, cryptocurrencies have been at the receiving end. Therefore, the Proof of Work (POW) has made using fossil fuel-generated energy mandatory for bitcoin mining. However, the facet is gradually changing as emerging blockchain networks have consistently started to incorporate more environmental-friendly consensus mechanisms. Such attempts have intensely driven the adoption of green energy.
Final Thoughts
The speculations around cryptocurrencies are going to continue in the coming years. However, the fact is that it is still a new concept. Therefore, it becomes necessary to keep a lookout for the crypto trends. The future of cryptocurrency will witness ups and downs, but the trends seem promising, and the time is ripe for exploring the crypto space.
What are your views on this topic? Tell me in the comment section below!
