Cryptocurrency prices could explode exponentially in 2023

Source: Unsplash/Maxim Hopman

The cryptocurrency market recorded a 1% gain in the last 24 hours and its total market capitalization rose to $894 billion. This represents a 6.5% increase over the past two weeks, raising hopes that the market may have turned a corner after a difficult 2022.

There is no doubt that the last year has not been particularly good in the field of cryptocurrency. Terra and FTX crashes, as well as the 64% price drop, are examples of this. However, apart from the fact that the market has rallied slightly in recent days, various macro indicators suggest that 2023 could be the year of the strongest recoveries.

Indeed, we are witnessing not only an easing of inflation in various countries and an increase in employment. In addition, bond yields, especially those of US Treasury bonds, suggest that interest rates will fall below 5% this year, which is less than some analysts had feared. This forecast is very good news for risky speculative assets such as bitcoin and cryptocurrencies, which could spend much of this year making up for last year’s losses.

Why Cryptocurrency Prices Could Have a Significant Increase in 2023?

In a speech explaining why bonds are currently good news for venture investors, fixed-income manager Jeffrey Gundlach argued that they are a more reliable indicator of future interest rates than hints and informal comments from policymakers. Federal Reserve.

Indeed, during a webcast on Tuesday, the CIO i Capital DoubleLine said, “My 40+ years of experience in finance strongly advises investors to look at what the market says, not what the Fed says.”

Right now the market is saying base rate e Fed may not rise much more than the current level, which is between 4.25% and 4.5%. That’s because Treasury yields are trading below the Fed’s official range. So even the two-year rate ended yesterday slightly below 4.25%.

In other words, the market doesn’t buy and sell bonds at higher rates because it doesn’t believe, in principle, that the Federal Reserve will actually raise its own rates. He does not see the need to charge rates of 5% or more, as he does not believe that Official Fed rates will increase this year.

Consequently, US central bank could start cutting rates again as 2023 progresses, which would be favorable for risky assets like cryptocurrencies. Indeed, falling rates make high-yielding assets more attractive to investors. This is partly because bonds will not offer such high yields and because falling rates indicate an increase in the money supply.

Improved macroeconomic situation

In return, investors should expect cryptocurrency prices to rise. Of course, this also depends on other macroeconomic factors. In this context, war in Ukraine and rising inflation have all driven down the prices of bitcoin and tech stocks over the past year.

Fortunately, there are signs that the environment may be slowly improving. Inflation in the United States has fallen for two consecutive months, going from 9.1% in July to 7.1% in November. The drop was helped by falling oil prices, with US crude falling to just over $73 last week from a 13-year high of $130 in March.

In this way, a drop in prices does not make the case for higher interest rates, while the decline in economic activity strengthens the case for lower rates. Recent weeks have seen contraction in many major economies. This is the case of the US services sector, which contracted in December for the first time in two and a half years.

Now that the Fed and other central banks around the world have slowed the rise in inflation, they may begin to reverse the trend by 2023, especially if economic activity continues to slow. We are already observing Decrease in UK GDP and in China, especially in the manufacturing sector. Other major nations are predicting similar phenomena, starting with Germany and France.

Therefore, it is very likely that central banks will start acting again to stimulate economic growth. Again, this means lower interest rates and, therefore, an increase in the money supply. In effect, the more money, the more investment and speculation.

This includes investing in cryptocurrencies. Of course, it’s hard to say how much digital currencies like bitcoin will gain this year, but since many have lost between 65% and 90% of their value in 2022, the returns can be substantial.

It goes without saying that things won’t happen overnight. But with falling inflation and keeping bond yields low, it appears that the long process of economic transition has just begun.

New altcoins may benefit more

When the next market rally comes, it is likely that altcoins newer ones will benefit more than established cryptocurrencies such as bitcoin and ethereum. So the tokens that are currently in presale could be among the biggest winners since they are starting from such a small base.

Even in the context of last year’s market downturn, some pre-sale tokens saw very strong gains after their initial listing. For example, Tamadoge (TAMA) rose 1,800% from its presale price in October, while Lucky Block (LBLOCK) rose 6,000% from a sale price of $15,000.

The following three coins are currently on presale, and each of them have basic characteristics which should help them achieve good results. This will be especially the case if they are quoted during a general market recovery.

Meta Masters Guild (MEMAG)

Meta Masters Guild stands as one of the newest and most exciting projects in the cryptocurrency ecosystem. It is a mobile focused gaming group for the web3 industry and games to win. Based on the Ethereum network, the platform will create many blockchain-based games with playable NFTs. Additionally, it will provide rewards in the form of its native MEMAG token, which can also be staked and traded.

The pre-sale started at the end of last year and the price of 1 MEMAG is currently $0.007. That price will increase for the rest of the sale, which is expected to begin in just over nine days. The presale is expected to take place in a total of seven phases, with the seventh phase setting the price of 1 MEMAG at $0.023.

The presale will be for 350,000,000 MEMAG, which will raise about $4,970,000 if all are sold. This equates to 35% of the total maximum offering of 1 billion MEMAG, 50% of which will be locked up for at least three years before being sold.

Fight Out

Fight Out is an Ethereum-based platform that combines real-world training and Web3. Unlike previous M2E apps, it will track and reward a much wider range of workouts. These include boxing, weightlifting and yoga. It will also offer a range of courses online and in its own branded gyms.

Its token presale began in December and has already raised more than $2.8 million. Currently, one FGHT token sells for $0.0166. The presale is expected to end in the second quarter of 2023, when the company will make its first listing and launch its app.

C+Charge (CCHG)

C+Charge (CCHG), which runs on the BNB Chain, is a peer-to-peer payment platform for electric vehicle (EV) charging stations. It launched its token presale in December. The main objective is to use blockchain and cryptocurrencies to expand access to carbon credits. The CCHG token will be used within its platform by electric vehicle owners to pay for charging their vehicles.

Additionally, C+Charge will reward users with carbon credits based on NFT technology for charging their electric vehicle at its stations, which will encourage people to go green. C+Charge has already signed partnerships with Flowcarbon and Perfect Solutions Turkey, adding 20% ​​of EV chargers in Turkey to its platform.

Given this rapid progress, C+Charge represents another new platform that is well on its way to fruition Have a great year 2023.

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