Since prices usually rise again one year after a bearish market, Bitcoin and many altcoins could rally in 2023. Amid distrust toward young projects, many investors may turn to safer assets.
After the crash in early November, sentiment in the crypto market has remained relatively moderate. Due to the low prices and little movement, the level of enthusiasm has dropped among the friends of cryptocurrency.
This year, the crypto market has experienced difficulties as the bearish trend has been in full swing. Although prices stabilized in the second half of 2022, cryptocurrencies have lost between 70 and 90% of their value.
In addition, the market has faced crises such as the bankruptcies of Terra (LUNA) and Celsius, in which investors lost much money. In November, the situation worsened with the FTX collapse and the drop of the FTX token by 90%.
Bitcoin and Other Cryptocurrencies Might Recover Significantly in 2023
However, the crypto market might recover, as crises have always led to price increases and innovations in the medium and long term. The year after a bearish market has historically been a period when prices can rise significantly again.
Therefore, there might be a rise in the price of Bitcoin (BTC) and many altcoins in 2023. In that context, investors might expect to see extreme crypto trends.
Investors Might Turn to Stablecoins as the Price of Bitcoin Rallies
Due to the 2022 scandals and overall losses, investors could move to more stable assets. For example, the recent increase in the price of Litecoin (LTC) could be a harbinger of the growth of those developments.
Amid a climate of distrust towards young projects, many investors might venture into safer assets. In addition, the dominance of Bitcoin might rise after falling over the last year.
Bitcoin is trading at around USD 16,583 and has accumulated a 0.1% loss over the last 24 hours. While its daily trading volume is above USD 17.32 billion, its market capitalization is about USD 318.70 billion, according to CoinGecko.
Meme Coins Might Rise despite the Fall of the Market
Some assets follow a trend contrary to the direction in which the overall crypto market is moving. Meme coins, the most volatile and risky investments, might reemerge next year.
Shortly before the recent collapse of FTX, the price of Dogecoin (DOGE) rose significantly. Since Elon Musk acquired Twitter, that meme coin might experience significant gains in 2023. Investors could also turn to Shiba Inu (SHIB) and many other meme coins like Tamadoge (TAMA).
DOGE is trading at around USD 0.098474 and has accumulated a 5.9% gain over the last 24 hours. While its daily trading volume is above USD 1.36 billion, its market capitalization is about USD 13.49 billion, according to CoinGecko.
Investors should research Bitcoin and other cryptocurrencies to know their all-time highs, behavior, and possible future prices. However, it is only a matter of time before seeing where the market will take the value of crypto assets.
By Alexander Salazar
