Crypto Market Forecast: 3 Top Trends That Will Affect Crypto in 2023

As the page turns on the chaotic events of 2022, experts are looking forward to a busy new year in the cryptocurrency world, with regulation and the price of Bitcoin expected to take center stage.

The crypto market operates at a grueling speed with a never-ending news cycle, making it incredibly difficult to distill the year ahead into a few trend-setting points. But by reflecting on 2022’s highlights, it’s possible to get a picture of 2023.

Read on for the Investing News Network’s (INN) outlook on the crypto market for the year 2023.

1. Better outlook for Bitcoin prices

When it comes to the new year, several trends are expected to play a role in how cryptocurrencies perform.

One expert told INN that ongoing concerns about the wellbeing of the global economy, including worries about a looming recession, will play a key role in how large-scale businesses interact with blockchain opportunities.

“What that does open up is organizations that are seriously looking to redefine how they operate, and the pursuit of making the processes better in pursuit of alpha returns,” said Abhishek Sinha, a partner at EY Canada.

“I think we’re going to see far more serious investment and more targeted investment on solving real-world problems and scaling things,” added Sinha, who is also the firm’s national banking technology leader.

Elliot Johnson, chief investment officer and chief operating officer with Evolve ETFs, told INN he expects to see clarity regarding the rate of inflation early in 2023, which will “add more certainty to the investment picture for everybody.”

The investment expert said inflation will settle down, making risk assets a more appealing option for investors.

In a recent interview with INN, Gareth Soloway, chief market strategist at, said he expects to see the price of Bitcoin, the world’s leading cryptocurrency, bottom out at around US$9,000.

After that he foresees more clarity when it comes to regulation in the sector. “Once (Bitcoin bottoms), I think it’s going to coincide with regulation coming out, and then I think you actually start to see a move back up in Bitcoin,” he noted.

Peter Eberle, president and chief investment officer at Castle Funds, told INN he expects 2023 to be in general a better year than 2022 for Bitcoin. “Are we going to retake all-time highs? I think that might be too optimistic to say, but I think you’re going to see a much, much healthier market next year,” he said.

For his part, Alex Tapscott, managing director for Ninepoint Partners’ digital asset group, told INN he expects 2023 to be the year bigger enterprises will adopt Web3 opportunities.

2. More regulation, more serious investors

Following a tumultuous 2022 that featured the collapse of two major crypto exchange projects, investors have faced some soul searching about what the industry needs moving forward.

Clare Adelgren, global sales and operations leader for EY’s blockchain division, told INN more checks and balances are needed if the industry is to become mainstream, especially on the financial side.

“Stability doesn’t have to be a bad thing,” Adelgren said.

The experts INN spoke with believe that after the collapse of FTX a reckoning is approaching as losses mount for investors.

Nick Kuriya, vice president and head of crypto at Purpose Unlimited, said the FTX scandal happened due to a lack of oversight, and called on regulators to step into the industry. “Regulatory policymakers need to provide some clarity to the industry, because an absence of clarity, what (it) does is it creates risk for anyone that wants to operate,” he said.

Increased regulation is long overdue and will be critical for the safekeeping of the digital asset class.

“Most of us that are in this industry believe in good regulation, and (think) it will wipe out the fraudsters,” Eberle said.

When asked how better regulations could be implemented, the investment expert told INN that the Commodity Futures Trading Commission should be the US regulator for Bitcoin.

“People are always concerned that regulation means stifling the industry. We don’t believe that’s the case,” Eberle said.

He drew a parallel between cryptocurrencies and the housing market prior to the 2008 crash. The housing market needed oversight and regulation leading up to and after the historic crash.

“Part of the failures that happened at the time were that they were so unregulated, but once regulation came into the space, more large institutional investors could trust the marketplace and come in,” he said.

The same could be true for cryptocurrencies, Bitcoin in particular, Eberle said.

“There are a lot of institutional interests out there that are currently looking for ways to get exposure to Bitcoin … if they had regulatory clarity going forward, then I think they would take direct exposure to Bitcoin, which would be extremely bullish.”

3. Balance needed to avoid overregulation

While many market participants are eager to see more regulation in the cryptocurrency market, others have concerns about overprotection and the impact of approaches that are too heavy handed.

Tapscott told INN he is sure the market will see regulatory clarity in 2023, but doesn’t know how it will be received by Web3 enthusiasts. “My view is that we need a legal framework that protects users and promotes innovation,” he said.

Tapscott explained he wishes to see regulation specific to financial protections.

“Any centralized institution that’s acting as a deposit-taking firm and holding assets on behalf of customers needs to be regulated … if it looks like a bank and walks like a bank and talks like a bank, it’s acting like a bank.”

Secondly, Tapscott expects to see regulation in the form of rules breaking up exchange functions from custody and brokerage. He thinks regulation should stop there so as not to stifle innovation in the space.

Investor takeaway

It’s clear that regulation will play a critical role in the path of crypto investments in 2023.

As always, investors will need to be prepared for swings of volatility. In the next 12 months, these could relate to discussions around how broad and impactful regulators should be when it comes to digital asset class opportunities.

Don’t forget to follow us @INN_Technology for real-time updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

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