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Promising cryptocurrency trends in 2023 you need to know
The past year has been a wild ride in the cryptocurrency space. Many analysts have questioned crypto’s ability to survive and endure and investors hesitate to hold coins.
However, the cryptocurrency market still maintains a $1.05 trillion market cap, and 320 million people use cryptocurrency.
And since early January, crypto market appears to be recovering from a long period of winter as cryptocurrency keeps going high.
The cryptocurrency market seems to be unpredictable. Let's take a quick look at some of the key trends of cryptocurrency to come in 2023 before investment.
 
There has finally been a recovery
Analysts believe the crypto market will recover in 2023. By the end of the year, the bulk of the bear market will be behind us; however, a full bull market, going by bitcoin price history, is not guaranteed.
Some believe the bottom will be reached in the first quarter of 2023, with bitcoin falling to $10,000 or lower. These price declines might cause most altcoins to decline by 60% to 80%.
The price of Cardano may drop to around 10 cents. This might be an opportunity for those who want to buy or a signal that its reputation as the Ethereum killer has ended.
 
Calls for stronger regulantions
2022 saw several game-changing scandals in the crypto industry. These events have already been covered in great detail (and some are still developing). Calls for more legislation are emerging.
So far, the U.S. government has very few laws and regulations surrounding cryptocurrency. Cryptocurrency is covered by things such as the Bank Secrecy Act and anti-money laundering act, but the government leaves much of the lawmaking up to the states.
The bipartisan infrastructure bill to the tune of $1.2 trillion signed by the U.S. president in 2021 includes crypto tax reporting provisions expected to make it easier for the IRS to track crypto activity among Americans.
The new regulation is expected to help investors keep records of any capital gains or losses on their crypto assets. Furthermore, the new rules may also make it easier for investors to report crypto transactions properly.
Regulatory announcements may affect the cryptocurrency price in already existing volatile markets. However, many experts reiterate that regulation is good for the industry. Ultimately, sensible regulation will be a game-changer for everyone.
 
Crypto goes mainstream
Cryptocurrency has come a long way from its early days as a largely unknown and untested asset. Today, it's clear that crypto is being taken seriously by mainstream institutions, with banks and businesses across the globe starting to offer their own crypto products and services.
There will be an increase in the number of cryptocurrency holders in 2023, and cryptocurrencies have been adopted by about 4% of the global population.
The mainstream social media is all on the way to utilizing cryptocurrency. Facebook and Instagram, including Bitcoin and Ethereum, are currently testing many smart contract cryptocurrencies. Further, free speech social media platforms such as Telegram and Signal have begun incorporating many crypto features into their platforms. As well, Elon Musk has confirmed that Twitter will also integrate crypto.
 
Crypto drives the adoption of green energy
A lesser-known but potentially pressing trend for the crypto industry is the sector’s energy and climate change implications. Bitcoin mining, for example, churns around an estimated 40 billion pounds of carbon emissions in the United States alone.
With such significant carbon emissions, the Proof of Work (POW) necessitates the use of fossil fuel-generated energy. However, the facet is steadily changing as emerging blockchain networks have consistently started to incorporate more eco-friendly consensus mechanisms.
Interestingly, the ongoing attempts to create a more sustainable consensus mechanism have intensely driven the adoption of green energy.
 
Conclusion
Ultimately, there will be a lot of speculation around cryptocurrency. However, the reality is that it’s still a new investment. That’s why it is essential to keep a lookout for the trends.
As business entrepreneurs, you may also choose to facilitate clients by offering a robust crypto solution. The future of cryptocurrency will have swings, but the trends seem to be positive, and the time is ripe for exploring the crypto space.
 
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iPeakoin, a fintech company that builds an institution-grade global cash management platform, is committed to bridging the gap between traditional finance and crypto, and to providing a one-stop shop for diversified and globalized cash management with technology.