Crypto Bull Run Ahead? The year 2022 proved to be a painful ride for the digital asset industry. The global crypto market cap of $2.2 trillion has dropped below the $800 billion mark. The biggest of the cryptos like Bitcoin (BTC) and Ethereum (ETH) prices have dropped by a massive 65% and 69% on the year to date (YTD), respectively.
However, high inflation sentiments left physical gold outperforming Bitcoin massively. This proved to be the second worst YTD return for Bitcoin since its launch. Meanwhile, few cryptos were able to absorb the turbulence this year while there was some apparent winner this year.
Crypto bull run in 2023?
As per the report, BTC’s recent price drop closely depicts the bear market patterns which can be found in the previous cycles. The 2018 bear market lasted for more than 364 days while the 2014-15 bear market lasted for around 407 long days.
Bitcoin price has bottomed 376 days after peaking but if BTC reaches the bottom in 2023 then it will be the longest drawdown ever. However, there are several potential catalysts ahead. FTX proceedings can urge the regulators to make tougher rules for the crypto market.
Meanwhile, experts believe that this is a positive signal related to the U.S. spot BTC ETF launches. This will lead to a better classification of tokens as a plausible outcome by the end of the year.
What can effect crypto market?
The European Union Parliament is yet to vote on the MiCA bill in February 2023. However, the effect of the bill will be 12 to 18 months to cover the complete market. The next in line SEC’s Grayscale lawsuit will make progress in the first quarter of 2023.
The tightening macro situation and Bitcoin correlation to macro analogies to the last bear market will be the bigger space to build BTC exposure.
A low trading activity will be the key trend in the year 2013. The crypto market might look more boring than in the previous three years. Expert hints that patience and long term positioning will be the key for investors.
BTC price to surge?
It is predicted that Bitcoin price will trade in a flat range this year. However, BTC price will 2023 close at a higher price than the yearly opening. The correlation between Bitcoin and equities is expected to soften up as trading activity in crypto witnessed a decline.
The post Bear Or Bull Run? What To Expect From Crypto Market In 2023: Report appeared first on CoinGape.