Crypto Market Enters Natural Selection Momentum in 2023

The crypto market is expected to remain under pressure until next year. A new reversal occurs when there is an easing of monetary policy. Tokocrypto trader Afid Sugiono said that next year there is a possibility that crypto will still experience high fluctuations.

"Maybe in early 2023 there will be another decline from the current price position," he told Kontan.co.id, Sunday (18/12).

The consideration is that the global macroeconomic situation has not improved, the inflation rate of many countries is still high and the increase in The Fed's interest rate is likely to continue. On the other hand, the situation in the global crypto industry has not improved after the collapse of Terra Luna and most recently FTX.

According to him, there are concerns that the domino effect of FTX will continue to affect several other crypto companies.

"Those two things might make it difficult for the market to return to a bull run," he explained.

However, towards the middle to the end of 2023 it is considered possible that Bitcoin and other cryptos will reverse direction and experience an increase in value. It is hoped that the macroeconomic situation and the crypto industry will be better and more stable.

Afid explained, these types are prospective because they have concrete utility. They provide blockchain networks for developing DeFi technologies, NFTs, other applications.

He continued, if the industry progresses, cryptocurrencies will benefit from using the technology they offer. The more use of technology in each crypto's blockchain network, means there will be an increase in price.

In addition, these crypto assets have a large market cap.

"This means that trades or transactions have been carried out and there are already many investors who hold crypto," he explained.

Meanwhile, for prospects until the end of this year by taking the example of BTC, he sees that from fundamental and technical analysis in the short term it will be difficult for Bitcoin to fall to the level of US $ 10,000. BTC and other cryptocurrencies have been in a lower position since the crypto winter that started earlier this year.

According to historical patterns involving Bitcoin cycles, 2022 will most likely be similar to the 2018 crypto bear market. The decline of BTC from ATH positions is a maximum of 80%.

"Price predictions, referring to history, ATH Bitcoin in November 2021 will reach US$ 68,672, so that the bottom position can drop by 80% or around US$ 13,000," he explained.

Then in the short term, the deteriorating macroeconomic situation and the domino effect of the fall of FTX will still be felt spreading to the foundations of the crypto industry ecosystem. Therefore, crypto investors must be prepared for the worst-case scenario, if crypto prices can still fall even further.

Projection until the end of 2022, bearish market conditions. The price of BTC can be between US$ 15,000 to US$ 21,000. The momentum of the movement of BTC and the crypto market as a whole still depends on the macroeconomic situation and the policies of the Fed.

From the long term side, there is positive sentiment that could bring the crypto market to a bull run with the Bitcoin Halving in 2024. As in the Bitcoin Halving cycle which touched a low price in 2018, then rallied fast and bullish in the 2020-2021 period.