Last year was one of the most difficult for cryptocurrencies, and Bitcoin was not immune. With its value plummeting, investors started to face uncertainty. Some rushed to sell their BTC, while others saw an excellent opportunity to make long-term investment strategies with the largest crypto by market cap. This market is recovering slowly but surely from the bearish phase. Since cryptocurrencies sell at a bargain price, it might be the ideal time for individuals looking to diversify their investment portfolio cheaply. But is 2023 going to be kinder to Bitcoin? And what about other cryptocurrencies? After all, the world’s first successful decentralized digital currency sets the tone for its peers.
It’s common for many tokens and coins to move in similar patterns in the cryptocurrency space. When the BTC price goes up, other digital tokens tend to rise in value, too. Similarly, when it drops, other players in this market suffer concomitantly.
Let’s see how experts feel about BTC this year and what shape the overall cryptocurrency market might take.
Bitcoin and its bullish phase
The BTC price dropped a little in February 2023. However, owing to the halving event next year, crypto experts remain bullish on Bitcoin. These events occur every four years and mean that the reward for Bitcoin mining is cut in half. It is viewed as a positive event as this policy was implemented into Bitcoin’s mining algorithm to counteract inflation by maintaining scarcity. Historically, halving has been regarded as a positive indicator for reviving the price of bitcoin.
Other investors, large institutions, and corporations hold a bearish view of BTC. There’s a common fear that tighter monetary policy and rising interest rates will prevent Bitcoin from recovering significantly soon. Those holding the asset are swimming in uncertain waters; some are selling their positions, while others are willing to wait however long it takes to see the oldest digital asset regain value.
Worldwide adoption will increase
More than 10% of internet users worldwide likely own some form of digital currency. For 5 billion internet users, the number would be 500M people. Global cryptocurrency adoption hit an all-time high in Q2 2021. Adoption has moved in waves ever since, with a drop in Q3 when prices decreased and a rebound in Q4 when prices soared, falling in the last two quarters as the bear market approached. Still, it’s worth noting that worldwide adoption is higher than pre-bull market 2019 levels. And many individuals who were attracted by the rising prices in 2020 and 2021 stuck around and allocated a good part of their investment funds to the oldest cryptocurrency, BTC. Significant, long-term Bitcoin owners are holding through the bear market and are optimistic that things will bounce back, keeping the market fundamentals relatively healthy.
Individuals in lower-middle and upper-middle-income countries rely on digital currencies to protect their savings from fiat currency volatility, send remittances, and meet other financial needs specific to their economies. These countries tend to lean on BTC more than others. It’s interesting to see the solutions that the crypto industry has created to boost adoption in high- and low-income countries over the years.
According to research from Deloitte, by 2025, almost 10% of the global GPD is set to be stored on blockchain platforms. This demonstrates how widespread the use of these digital assets has become.
Here are some of the countries with wide-reaching adoption in 2023.
Japan
Regarding cryptocurrency adoptipn, Japan set an example being among the first to embrace it and remains a top contender as we head into 2023. Bitcoin was recognised as a legal tender by the Japanese government in 2017. Many crypto exchanges have been approved ever since, making this country one of the most crypto-friendly ones worldwide and a leader in crypto adoption. But where it really differentiates from other states is its enthusiasm to experiment with technology based on blockchain. The country has several interesting projects that push the boundaries of what blockchain can accomplish.
United Kingdom
The UK has taken a more cautious approach to embracing cryptocurrencies. However, crypto adoption in the UK has increased by 650% in 3 years. 2021 was mostly positive for this industry, owing not only to the meteoric rise in crypto prices but also to an increased acceptance that Bitcoin and other digital coins are viable forms of investment. Adoption rose dramatically, reaching 9.8 million in 2021.
Bitcoin accounts for more than 30% of all cryptocurrencies owned in the United Kingdom. Many people buy it, as in most other nations, and the asset leads to usage and ownership throughout the country.
United States
Although the United States is still behind other countries regarding crypto adoption, it has potential. Crypto exchanges are increasing across the country, and more states are considering jumping on the trend. While the US has been slower to embrace digital currencies, it continues to be a major player in the industry. With the Biden administration’s interest in exploring crypto, the country’s GDP is expected to be highly impacted by them this year.
Singapore
Singapore has long been cited as one of the most technologically advanced Asian countries, which its level of crypto adoption additionally proves. The city-state was among the first states to recognise Bitcoin as a legal tender, so it became a hub for crypto investment and innovation. The Singaporean government supports cryptocurrencies and has set up regulations encouraging innovation and safeguarding investors.
South Korea
South Korea is another example of a country eager to embrace cryptocurrencies and is often regarded as an example of a booming crypto economy. It’s among the largest markets for BTC trading worldwide, as it has established strict regulations for crypto exchanges. As it stands, it’s expected to remain a leader in crypto adoption this year.
Last words
There are several predictions and views regarding BTC, but no expert can tell what will happen in the crypto space. By the time you decide to invest, things might change. No one says you should check the price charts every minute, but you should have solid knowledge and buy Bitcoin or other cryptocurrencies when you feel 100% ready.
