Bitcoin and crypto: what to expect in 2023 (BTC-USD)

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“Up like a rocket, down like a rock” is how the ever-repeated history of the markets repeats itself. Now, it’s no surprise that traditional investors find the idea of ​​cryptocurrency disgusting. The internet was hard enough to swallow, then suddenly there appeared crazy magic money that made no sense and produced billions in profit for – in Scooby-Doo parlance – “those pesky kids”.

Any seasoned investor has been trained on the “South Seas Bubble”, John Laws’ “Mississippi Bubble”, “Tulip Mania”; everyone knows they come off horribly. Bitcoin (BTC-USD) is exactly the same.

They’re right.

BUT

The South Seas bubble was created by the emergence of the London Stock Exchange, which has not looked back since, and represents a key piece of infrastructure in the global economy. John Laws Bubble was the introduction of “fiat”, which has had a checkered history since, but is still money as we know it and was about marketing a fairly large proportion of the United States, which is today obviously an economic and political power. . As for Tulip Mania, tulips in Holland are still a billion dollar industry. I bought some last week, and they still look great in my hall vase. There are other examples of bubbles and crashes that generate great value, none more so than Dotcom’s boom and crash. Meanwhile, exotic securitization derivatives continue to rise even though they nearly sank the global economy in 2008.

So let’s not think of bubbles as fads that turn into something huge. Crypto will be no different.

However, no one really cares about the long term, they want to know what Bitcoin is going to do tomorrow.

The answer is, it will go up and down.

The real call is what he will do in 2023

Here is the table :

Bitcoin price (ADVFN)

So this is the easiest way to speculate on what will happen next:

Bitcoin price (ADVFN)

The good news is that the volatility is gone. The downside news is that there is a pent-up wall of FTX contagion that has yet to surface. Gemini’s recent missive on DCG, Genesis, Grayscale “dynamics” highlights just one of the potential debacles that can only depress crypto values.

The big bullish news is the upcoming “halving,” which is when Bitcoin issuance halves. However, that is only March 2024 and it could take until then to put upward pressure on prices.

So, the outlook is bearish in 2023, but wait, it could go either way: BANG up comes another FTX-like situation, down goes Bitcoin. Contagion rules and prices capitulate. This will be the bottom; a bottom that will see a purge of the spicy CeFi platforms. Then, once a period of mourning has passed, it will be time to accumulate. CeFi platforms hang on, pretending the rules don’t apply to them or hiding or just plowing anyway until the inevitable result is that they fail, or the market turns and they quietly and secretly trade their way to a better place. In this case, the market will slow down until mid-2024, when the “halving” takes effect. The trend should show where this ends and it could be well below $10,000.

I still like $13,000, which has been my target for over a year now, but price levels at the end of a bear market are very uncertain.

What to do? Self-guard. Keep your crypto in your own wallet; remember, not your keys, not your crypto. If you need to play on a CeFi platform, don’t use it as a bank and be able to get up and running in minutes. Park your funds in USCoin (USDC-USD), but keep an eye on all stablecoins because nothing is sacred in crypto. Make sure the DeFi providers you use are truly “decentralized” and not playing fast and loose with side deposits. This is a difficult work. If you sense spicy behavior, give up on anything. Prepare for re-entry so that no matter what, you can get in or out when things start. Do not rely on a single provider of any type of service.

Better yet, wait until you hear all about crypto forever, any fool could see it was a scam, this time it’s really dead… Make sure it’s a mainstream and naughty pager. Then make sure the prices seem really low, wait a few weeks and buy.

I think we’ll have another leg before Easter, and then the call will be: is there another drop to $8,000? Until CeFi’s purge is complete, the bottom won’t be there. It could then be simple to buy Coinbase (COIN) at whatever price it is trading at. However, in the end, loading on Bitcoin, Ethereum (ETH-USD) or a coin like Polygon (MATIC-USD) will be the way to go for the big win.

and then after it went up like a rocket, remember it came down like a rock.

Editor’s Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these actions.

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