Tech

Where is Bitcoin headed in 2023?

Where is Bitcoin headed in 2023?

Bitcoin has been one of the most popular assets in the world since its introduction back in 2009. While large portions of its success have been attributed to the hype that has been created among traders surrounding the original crypto, much of it has eventually evolved into a deeper appreciation for crypto’s prospects. The appeal of crypto has only grown in recent years, despite criticism by some who deem it a fundamentally risky asset and a surefire way to lose precious capital at worst.

In 2020 and 2021, Bitcoin reached new heights, and its value has increased to previously unseen levels. Unfortunately, the good fortune didn’t last for long, and in 2022, the global bear market swept BTC away as well, leaving room for the ongoing crypto winter. Prices have plummeted, and many investors have opted to sell their crypto before the prices drop further. Admittedly, it can be difficult to watch money disappear and take no action to save it. And while these events have convinced some traders to swear off crypto for good, others have decided to stay and wait for the situation to change. After all, this isn’t the first time that the Bitcoin price has dropped significantly, only to spike back later, stronger than ever. As such, it’s not a leap to imagine that the same situation can repeat itself, and the tides are likely to change quite soon.

But is it realistic for traders to expect a significant change over the upcoming year, or is it mostly idealistic make-believe? Let’s delve into some of the predictions for 2023.

Price predictions

The first thought that will pop into your mind when you’re a trader is how the price will change over 2023. The good news is that bitcoin will survive despite the continued volatility. While the currency is still reeling from the effects of the recent collapse of the FTX exchange, this is expected to improve gradually over the following months. However, don’t expect it to disappear completely.

While keeping an optimistic outlook is always a good idea, you mustn’t fall into the trap of expecting anything too extraordinary. Crypto’s climb back to previous values will be slow and steady. While some have claimed that BTC will exceed $80,000 in the following months, this view is likely to be highly unrealistic. Moreover, you probably wouldn’t want such a steep increase so soon, regardless, because the extreme volatility would also impair trading ventures and make the whole process substantially more challenging.

While the price of Bitcoin has plummeted quite severely over the last year, reaching levels roughly a third compared to the beginning of 2021, purchasing consideration has remained steady. Owners and traders remain convinced that the asset will recover in due time, a view that isn’t outside the realm of possibility, as similar events have occurred since the crypto’s introduction in the late 2000s. Even crypto investors that aren’t directly involved with BTC and have instead gravitated towards the altcoins look towards the blueprint coin as a bellwether of the health of the larger crypto market, a clear indicator of how things are going.

Buy now, pay later

When you’re thinking about where to buy Bitcoin, you are thinking about exchanges. When you buy BTC, you have a look at the price fluctuations to ensure that you’re not buying at a high price. If values seem particularly elevated at some point, it can pay off to wait for a while until they decrease. If you’re a true professional, you can take it a step further and analyze price charts. Looking at the figures can provide clear indicators of what you can expect from Bitcoin over a designated period of time, enabling you to make sounder trading decisions.

However, when it comes to Bitcoin, it’s worth remembering that the digital asset has use cases that also apply to the real world. In the past couple of years, e-commerce has raised to new heights, frequently surpassing shopping in physical stores for most buyers. Throughout 2022, BNPL services have registered marked growth. The convenience of Buy now, Pay later is difficult to deny. The economy has been on thin ice over the past year, and shoppers have felt this keenly affects their purchasing power. And with households spreading their budgets thin, the idea of spreading out payments over a fixed time, usually with no interest, sounds very appealing. Gen Z shoppers, in particular, have contributed to the rise of BNPL, especially during the 2021 holiday season, when expenses tend to surge.

Many of these payments have begun to be performed in Bitcoin. However, over 2023 this can be expected to change, as retailers have started noticing a few of the catches of the Buy now, Pay later scheme. Most importantly, consumers are likely to take out too many of these loans and then find it challenging to pay back the total amount in due time. The current interest rate poses further problems for providers, making the service troubling in the long term. As such, you can expect you’ll have to pay for a more significant part of your online purchases with upfront Bitcoin rather than in separate installments from the following year.

Decentralized finance

DeFi apps have existed on the blockchain for a while now and are one of the most promising aspects of crypto. While still not used at a large scale, they’re a profitable venture, allowing transactions to be performed without a third-party needing to mediate the proceedings. This can potentially improve security, as reducing the number of people that have access to a body of data means minimizing the risk of data breaches. However, decentralized finance isn’t currently used in businesses and enterprises as it’s not deemed sufficiently reliable at the moment.

However, this is likely to change over the next year as technology moves further and further towards Web 3.0, an iteration of the internet built on blockchain, decentralization and token-based economics. Some are skeptical about how feasible this model is, so only time will tell the direction in which it can go.

Bitcoin has become increasingly popular over the years since its release. Now, a growing number of traders are looking into incorporating it into their portfolios. And while 2022 has been a tough year for financial assets, BTC owners are confident the situation will improve soon enough.

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About the author

Tom

Tom

Tom is a gizmo-savvy guy, who has a tendency to get pulled into the nitty gritty details of technology. He attended UT Austin, where he studied Information Science. He’s married and has three kids, one dog and 2 cats. With a large family, he still finds time to share tips and tricks on phones, tablets, wearables and more. You won’t see Tom anywhere without his ANC headphones and the latest smartphone. Oh, and he happens to be an Android guy, who also has a deep appreciation for iOS.