Crypto exchange failures, a long-term bear market, and regulatory uncertainty. These are just a few of the challenges the crypto space has faced over the last few years. Coin prices, which once were at all-time highs, quickly plummeted. This contributed to the overall loss of faith among traders. So, it’s safe to say that the world of crypto has seen better days.
But is the end of this dark period in sight? Will we ever see the golden days of Bitcoin again? There are lots of factors that influence the price and performance of crypto assets. In this article, we will discuss a few of these key factors to explore whether crypto is going to rise again in 2023 and beyond.
The Current State of Crypto
Before exploring the future state of crypto, we should take a look at how this asset is currently performing. Although all crypto coins have varying price movements, we can still identify overall trends in the market.
So far, in 2023, the cryptocurrency market has had a turbulent year. A combination of regulatory measures, safety concerns, and unstable economies has taken crypto prices on a rollercoaster over the past few months. Furthermore, much of the crypto market began this year on a downward trend. This is due to instances that took place in 2022, such as the fall of FTX, the destabilisation of stablecoins, and a sharp increase in regulations.
Despite these challenges, the crypto market still managed to escape its seemingly endless bull run this year. Currently, the global crypto market cap sits at $1.3 trillion. Although this is substantial, it’s still a drastic drop from its all-time high cap of $3 trillion in 2021. Additionally, according to the Fear and Greed Index, global adoption of crypto is still down as of Q3 2023.
With a shaky market sentiment, fewer investors were inclined to participate in the crypto space towards the end of 2022 and the beginning of this year. Due to this, many coins experienced a big drop from their all-time price highs and had a long road to recovery. However, some coins still managed to stabilise and even prosper this year.
For example, Bitcoin (BTC) has risen 47.47% this year and now has a value of $28,407. This is still a long way off from its all-time high of $68,789.63. But it is still a notable improvement from 2022 when BTC hit a yearly low of $15,787.53.
Other coins that have been huge gainers so far this year include:
- Render (RNDR) +334.82%
- Injective (INJ) +292.88%
- Conflux (CFX) +210.58%
- Akash Network (AKT) +207.60%
- Tomochain (TOMO) +275.90%
Road to Recovery
With a global market cap increase and price rise of thousands of coins, we can observe that the crypto market has been on the road to recovery this year. But many are still wondering if this positive trend will continue and whether or not crypto prices will keep increasing until the year’s end.
Will Crypto Rise by the End of 2023?
Many factors influence the price performance of both individual coins and the market as a whole. This includes market liquidity, regulation, supply and demand, financial market integration, and adoption rates. External economic factors such as inflation and geopolitical events can also impact prices. Therefore, it can be difficult to pinpoint with any accuracy whether crypto prices will increase towards the end of 2023.
However, by taking into account previous market trends, we can make an informed prediction on how coin prices are likely to perform in the next few months. Here are several factors that we can consider when predicting whether or not crypto prices will rise throughout the rest of this year:
Although Bitcoin has had a price hike this year, current trends indicate that this coin may experience a bearish correction from this month onwards. However, expert opinions can vary, and elsewhere in the crypto space, many are positive that Bitcoin is on track to rise well above $30,000 before the year closes.
One of the main supporting arguments for this prediction is the community’s anticipation of the 2024 Bitcoin halving event. Around every four years, once 210,000 blocks are mined on the Bitcoin network, the reward for miners is halved. This slashes the rate of new BTC entering the market, which decreases supply and, in turn, increases demand.
Historically, in the months before and after a Bitcoin halving event, this coin’s price experienced a large rise. Therefore, we can predict that the next event will be no different. Although this event is not due until around April 2024, it’s possible that traders are already gearing up for the coin’s price hike, resulting in a general increase in BTC investments as early as this year.
We continue to refer back to Bitcoin as this coin has the potential to influence the rest of the crypto market. This coin is widely considered the most secure crypto asset, and hundreds of altcoins are derived from it. Furthermore, we can estimate that there are around 219 million Bitcoin owners worldwide.
Due to this, as Bitcoin rises or falls in price, many other coins appear to do the same. So, if predictions regarding the 2024 halving event prove to be accurate, then not only is Bitcoin expected to rise this year, but thousands of other coins will, too. But, as we’ve said, many other factors will impact the prices of coins, for better and for worse.
Unfortunately, the downfall of several cryptocurrency exchanges, such as FTX and BlockFi, last year has left a lasting impact on the crypto space. Many investors lost faith in these exchanges, and after billions worth of user assets were declared missing, millions of traders began to exit their positions. To this day, and throughout the rest of 2023, consumer confidence is predicted to remain at a low point.
A clear lack of trust is not the only challenge that exchanges will have to face, as regulatory developments continue to be a concern. Various proposals, such as the MiCA Act have placed new restrictions on exchanges, forcing them to adapt their operations. These new regulatory measures have impacted hundreds of exchanges, with the SEC taking 24 crypto enforcement actions in just the first half of this year.
One notable example is Coinbase, one of the world’s largest crypto exchanges. In June this year, the SEC filed a complaint against Coinbase for operating as an unregistered exchange. These actions caused the exchange to lose market share and experience a decrease in trading volume in the following months. Coinbase did file a motion to dismiss the SEC lawsuit, but the proceedings are still ongoing.
If regulatory bodies continue to target crypto exchanges, it could spell a disastrous end of the year for the crypto space. Traders may lose even more confidence in exchanges, and with the shadow of FTX still looming on us, many may choose to withdraw their funds. Any significant sell-offs due to concern over the stability of exchanges could decrease coin prices and result in a negative end to 2023.
The Next Five Years of Cryptocurrency
As we can see, there is much uncertainty regarding the state of crypto towards the end of this year. But regardless of whether prices rise or fall at the end of 2023, the global market cap of crypto is due to continue increasing. Crypto remains a viable digital asset to trade, and new crypto projects are constantly emerging. But that’s not to say that crypto doesn’t have plenty of challenges to overcome. The most prominent of these is the continuous rise of regulatory developments.
We can expect many more regulatory measures throughout the next few years. This will impact traders and businesses worldwide. In areas such as the EU, governments may take further steps to track crypto transactions, removing part of their anonymity. Additionally, any new crypto project that surfaces would be under more scrutiny and have an increase in rules to follow.
However, when it comes to crypto regulations, it’s not all bad news. In fact, an increase in regulations could potentially have a positive impact on cryptocurrency prices. More rules within the crypto space can help reduce fraud and other illegal actions. This could result in crypto being a much safer asset to invest in.
Additional traders may turn towards it as a way to generate passive income or to store their current funds. If all goes well with regulations, we could see more successful crypto presales, an increase in worldwide adoption, and an overall rise in prices.
Advancements in blockchain technology could also lead to coin prices rising over the next few years. Many businesses worldwide already understand the benefits of digital currencies and the utilisation of smart contracts. As of this year, a variety of industries have been leveraging blockchain technology to their advantage. This includes:
Many predict that in the next five years, global adoption of blockchain and crypto will expand exponentially. This will drastically affect how we all interact with this digital currency, and soon, it could become a staple in our lives. In turn, this could spell good news for coin prices.
For instance, utility tokens already serve specific purposes within crypto ecosystems. They play a very important role in a wide range of businesses and aid many day-to-day functions. As more industries adopt blockchain technology, utility coins will have an increase in utilisation. This means they could see a steep rise in prices over the following years. Other types of tokens, such as governance and security tokens, will also likely inflate in value.
The Top Future-Proof Cryptocurrencies
Although the future of cryptocurrency is uncertain, we can still use previous trends to identify which coins are the most future-proof. So, even in the volatile crypto landscape, you can still profit from your investments by buying suitable coins.
The best cryptocurrency to invest in this year will have a high trading volume, a large market cap, applicable use cases, a supportive community, and a dedicated development team. Crypto assets that can tick all these boxes are going to have future sustainability and, therefore, will be worth investing in. With this in mind, here are some of the best future-proof crypto coins to buy this year:
- Bitcoin (BTC)
- Ethereum (ETH)
- Polkadot (DOT)
- Cardano (ADA)
- Binance Coin (BNB)
- Avalanche (AVAX)
- Solana (SOL)
- Polygon (MATIC)
- Chainlink (LINK)
- Monero (XMR)
You can trade any of these coins through either a crypto exchange such as eToro or with a brokerage-matching platform like Bitcoin Up. Registration is free and you can visit the official page to learn how to set up a Bitcoin Up account. Although expert opinions and past trends lead us to believe that these crypto tokens are future-proof, it’s impossible to predict their performance. Due to this, you must never invest more than you’re willing to lose. Additionally, you should always do extensive research before trading, keep up to date with relevant news, and rebalance your portfolio periodically.
Final Thoughts – Will Crypto Rise Again?
To conclude, when identifying previous trends and the current state of crypto, there is a good chance that crypto prices will rise again. With the Bitcoin halving event taking place in 2024 and coin prices already being on an upward trend, many believe that crypto will end this year on a high note.
However, for 2024 and beyond, there is still much uncertainty. With an increase in regulations and an overall lack of confidence in exchanges, crypto has plenty of obstacles in front of it. Only time will tell whether digital assets will rise in price and continue to revolutionise the financial world or if we will see the beginning of the end of crypto.