Will 2023 Be A Turning Point For Crypto?
2023 is almost here and with it a lot of renewed hopes and sometimes fears for what the near year will bring for us all. As for crypto many are ready to leave behind the dreaded 2022 year for crypto and start rebuilding. Nearly ever crypto asset is down 50% or more from the start of the year. Huge issues with so called stable coins and the FTX blowout played a rather damaging point on the crypto markets and one some are speculation crypto may never recover from.
With that being said that's often the times when we have hit the bear market and might sit it in for a bit waiting for the next rally/ bull catalyst to take form. I don't think we will be waiting around too long for it however there are other glaring issues that 2023 will bring us.
Stocks and Inflation
2023 so far for stocks is looking like it's going to be ugly. The fed has started to just pull back only increasing by 50 points instead of their normal 75 points because of a slow down in inflation (which let me also point out is still high)
We have seen this happen in the past though where the fed backs off thinking that it's starting to come under control only for it to come back with a vergency 6 months later. That means summer of 2023 is going to be a very telling time for stocks and also crypto.
If we see markets slump and inflation start to soar again we will be in for more aggressive hikes from the FED again which will lead to a very harsh down turn on crypto and stocks. That will most likely go on for another 6 months to 18 months in which that 2025 bull market some are predicting might every well come true. However if markets rebound, inflation sinks and things start to look positive rolling into summer of 2023 we could see our bull run that winter so the end of 2023.
Crypto
Crypto is also finally getting a push at the moment. All of those big named games that where meant to come out a year or two ago are finally getting done and being released. Not only that but other larger projects are also set to release which might cause a general small adoption of crypto again and start generating revenue again. This in turn creates somewhat of a velocity of money which means defi should start to ramp up in value a bit as fees get collected.
All of this could paint the start of what will be the bull market later in the year or the next year. A slow steady increase is often what is seen before the masses step in and start to bull run everything.