BitMEX Predicts 2023 Crypto Boom: Bitcoin and Ethereum to Lead the Charge
In a recent blog post, crypto trading platform BitMEX provided an overview of its report titled ‘Crypto Outlook – Fundamentals vs. Sentiment: Three Scenarios to Watch in 2023.’
The blog post highlights three possible scenarios for the crypto industry in 2023 as it faces a positive interest rate environment for the first time.
Scenario One: Risk Appetite Recovers
BitMEX’s core hypothesis suggests that risk assets could gain traction as central bankers slow or halt rate hikes by the second half of 2023. This scenario would result in a rally for global capital markets, including cryptocurrencies like Bitcoin and ETH, thanks to lessons learned in 2022 and the elimination of poorly managed businesses.
Scenario Two: Caution Continues
The second scenario considers the possibility of risk assets losing ground due to fears of stagflation and delayed pivots, hurting crypto prices. However, BitMEX believes this scenario is less likely, as inflation has begun to trend downward, and Bitcoin’s price has remained stable during recent crises, demonstrating resilience comparable to other asset classes.
Scenario Three: A Safer Asset Class?
In the third scenario, BitMEX envisions crypto becoming a less risky asset. The industry has seen rapid innovation, leading to increased use cases and growing acceptance by institutional investors. This progress has prompted policymakers to develop regulations around trading, custody, and investment of crypto assets. This scenario is already unfolding and is expected to accelerate in 2023.
With the rise in use cases and regulatory developments, Bitcoin and ETH are predicted to re-emerge as dominant virtual currencies. Retail users will likely encounter crypto through next-gen gaming, NFTs, Web3, and the metaverse, making crypto a more immersive experience. As adoption grows and regulations evolve, blockchain technology will enable new use cases, shifting the perception of crypto from mere financial assets to the future of creating, validating, and transferring assets and ownership.
Image Credit
Featured Image via Pixabay
Source: Read Full Article