Prediction of ETH and BTC Crypto Assets in 2023
Edukasistan.com - Essentially, in the past year 2022, the crypto market experienced a bearish phase. In fact, the total number of crypto assets decreased by about 66% compared to the previous year. On the other hand, Bitcoin, the largest crypto, experienced a correction of 75% from its peak value.
Most altcoins also experienced a decline in 2022. So, what is the prediction for the crypto asset market in 2023, especially for ETH and BTC? According to Ajaib Crypto, this factor was caused by macroeconomic factors such as an increase in interest rates by the US Federal Reserve, high inflation, job cuts, and economic recession in general, which caused uncertainty in the market.
In addition, pressure also came from companies in the crypto industry that failed to sell their crypto such as Luna, Celcius, Voyager Digital, and the latest, bankrupt from FTX.
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| Prediction of ETH and BTC Crypto Assets |
As explained by Ajaib Crypto Analyst, an increase in inflation and interest rates will affect the crypto market in 2022, taking money out of the investment market as a whole. However, next year we may see the end of the bear market, with the Fed's attitude that could end interest rates in March 2023.
Previously, The Fed raised interest rates by 50 basis points to 4.50% (12/15/2022), which is the highest interest rate in 15 years.
According to CME Watch Tools, in 2023 there is still a high likelihood of an interest rate increase with an expectation of an increase of 0.25% at the next two FOMC meetings scheduled for February 1 and March 22, bringing the interest rate to 5%.
In addition, a decrease in tariffs is expected to begin in mid-2023, and after tariffs start to decrease, more liquidity will be available to re-enter the investment market, including crypto assets. "However, this is based on the highest inflation this year and is expected to decrease next year," added Ajaib Crypto analyst.
Ethereum Roadmap in 2023
Analyst 'Ajaib Crypto' explains that on September 15, 2022, Ethereum made an extraordinary transition thanks to The Merge, switching from Proof of Work to Proof of Stake. In addition, the Ethereum Foundation will release the Ethereum Project Roadmap for 2023.
Previously, Ethereum CEO Vitalik Buterin presented (5/11/2022) the latest roadmap for the Ethereum project called "The Scourge". This means that the next Ethereum update will have six phases compared to the previous five phases.
"In 2023 it is expected to be the year where Ethereum implements Sharding, which is a crucial step in improving scalability and the ability of the blockchain to store, access data, and increase transaction processing," said Ajaib Crypto researcher.
It is predicted that in March 2023, Ethereum will make an improvement in Shanghai in the Ethereum Improvement Proposal (EIP) 4895, which will allow users to withdraw ETH uploaded from the Beacon Chain consensus layer after a successful merge with Ethereum on September 15, 2022.
In addition, Ajaib Crypto researcher explains that the next Ethereum improvement to the Ethereum Improvement Protocol (EIP-4844) is expected to occur in May or June 2023, which will make the Proto Danksharding upgrade. This update will increase transaction data and improve layer-2 scalability, so gas fee charges will be cheaper on layer-2
Bitcoin Price Prediction For 2023
As explained by an analyst from Ajaib Crypto, the price of Bitcoin (BTC) increases before the halving. This is shown from the three previous halving moments that occurred (11/28/2012, 7/9/2016, and 5/11/2020). Bitcoin halving is an event where the mining cost for a Bitcoin block will be reduced by 50% from the previous halving.
This reduction occurs every time Bitcoin generates 210,000 blocks or about once every 4 years and will end when it reaches the limit of 21 million Bitcoins. According to Coingecko, the next Bitcoin halving is expected to occur in May 2024.
Although planned for 2024, another thing to consider is that at the end of 2023, Bitcoin is expected to increase its market participation. This is combined with a decrease in the number of BTC issued due to a decrease in block costs, which creates scarcity of resources and increases the price.
If the new BTC supply decreases and demand remains strong, the price can rise. If we look at the years 2011 to 2021, BTC will receive a correction in the following year after seeing sustained strength for three years.
For example, BTC strength from 2011 to 2013 then declined in 2014, and new strength in 2015-2017. If we look at the correction in 2022 based on BTC's history, then BTC strength can be strong from 2023 to 2025.
Is the price of Bitcoin going down?
Considering the negative economic situation and the impact of FTX's failure causing panic in the crypto market, it is expected to continue in the first quarter of 2023. Bitcoin may not have yet passed its current lowest point, while the possibility of a decline in Q1 2023 will still occur.
From BTC's movements over a 1 week period, BTC has formed a falling wedge pattern and has the potential to reach the $18,150 level. "However, BTC can also be corrected back to the support level to form a lower low in the support trendline area around the $14,000 level if it is unable to break through the resistance trendline zone," concluded Ajaib Crypto analyst.
In the third and fourth quarters of 2023, BTC is expected to strengthen above $25,000 in response to the possibility of a Bitcoin decline in 2024.
