Cryptocurrency Trends to Watch Out For in 2023

What is next for cryptocurrencies? This is the question on the mind of every crypto enthusiast or investor.

After a rather drab 2022 that saw many cryptocurrencies lose their value and many crypto services go bankrupt, many remain undecided as to the future of cryptocurrencies which some have touted to be the currency of the future.

Will Bitcoin surpass its previous ll time high anytime soon? Will previously performing coins like Cardano (ADA) recover? Will another meme coin like Dogecoin return and take the market by storm? Will Ethereum outperform Bitcoin going forward? These are just some of the questions that easily come to mind when thinking about cryptocurrencies in 2023. And if cryptocurrency news is anything to go by, there is much drama still to come.

Moving forward, here are a few predictions on what to expect in the cryptocurrency market as the year continues.

• Meme Coins to Lose Further Value

The problem with meme coins is that they have no real utility. Apart from acting as payment coins, most meme coins offer no personal utility, nor do they boast of any competitive advantage over others. That’s why meme coins bore the brunt of the market volatility in 2022. 

While some coins had their values wiped out, others like Shiba Inu and Dogecoin lost up to 90% of their value (from their respective all-time highs). This trend is likely to continue in 2023. One reason is that investors are now warier of coins with no real utility, as it has become obvious that these coins do not have the resilience to overcome the volatility associated with cryptocurrencies.

Also, if past trends are anything to judge by, most meme coins that peak over a short period tend to retrace. Apart from Bitcoin, coins with no real utility that succeeded in gaining 20,000% or more within a short time frame ended up retracing by about 93-99%. 

If you’re planning to invest in meme coins in 2023, you want to be extremely careful, so you don’t get left with valueless coins. 

• Bitcoin Price to Hit $30,000

Bitcoin started the year around $16,000 and has steadily climbed since then, hitting the $25,000 mark in February. While it has since retraced and is now hovering around $23,000, it is clear that the Bitcoin price outlook has improved significantly, and Bitcoin can easily hit the $30,000 mark by the end of the year. 

One reason why this is possible is that 2024 is a halving year. Every four years, the reward for mining Bitcoin is cut in half, and the amount of Bitcoin mined reduces. The Bitcoin halving event helps to maintain the scarcity of Bitcoin and forces it to retain its value. Over the years, halving seasons have always been positive for Bitcoin, leading to a rise in price. With another one around the corner, it may contribute to a Bitcoin bull run.

Again, after the announcement of the latest U.S. Fed monetary policy and the new interest rates, the market quickly adjusted to the new rates. While higher rates mean that more investors will avoid high-risk assets like Bitcoin, further hikes are unlikely to have as much effect on the Bitcoin price as in the past. 

• XRP to Rise Steadily

At some point in 2017 and 2018, XRP was the second most capitalized cryptocurrency after Bitcoin. Since then, the asset has been embroiled in a prolonged battle with the SEC. The legal dispute has been on whether to treat XRP as a commodity or a security.

Despite the legal battle, XRP remains popular among investors. By all indications, the asset also looks to have the upper hand in the legal dispute. With the court set to deliver a final ruling, many experts believe that a ruling in favor of Ripple against the SEC will cause the price of XRP to leap to new heights.

So if there is a coin to watch out for, it is XRP.

Stay on Top of the Trend

While it may be difficult to predict the future of the cryptocurrency market with certainty, past trends, and cryptocurrency news give us an idea about what to expect. On that note, we can predict with a degree of accuracy that meme coins are going down while Bitcoin is expected to rise, and XRP may rise if the court rules in its favor.

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