In recent years, the popularity of cryptocurrency has soared to a remarkable extent, and it has become a hot topic today. With each passing year, the crypto space is becoming more attractive. No wonder people are always looking for crypto trends to discover where they go in 2023. In this blog post, we’ll tell you about some of the most exciting cryptocurrency trends you should look out for in 2023. Let’s start!
Trends That Are Revolutionizing Cryptocurrency Space in 2023
In 2023, the crypto industry will continue to work on precise regulation around cryptocurrency globally. Lawmakers in Washington D.C. and worldwide are setting laws and guidelines to make cryptocurrency safer and more secure for investors.
This regulation was much needed to help prevent cybercrimes and deter fraud. However, it may come with its own set of challenges since different agencies may or may not have jurisdiction to authority to oversee everything.
What would the new regulation spell for investors?
The U.S. president signed the bipartisan infrastructure bill to $1.2 trillion in 2021, including crypto tax reporting provisions anticipated to simplify tracking crypto activity among Americans for the IRS.
The new regulation is expected to aid investors in keeping records of any capital gains or losses on their digital assets. The new rules may also simplify reporting crypto transactions correctly for crypto users.
However, these regulatory announcements may affect the prices in volatile markets. Nevertheless, many experts firmly believe that regulation is good for the industry and that sensible regulation will be a game-changer for everyone.
Approval of Crypto ETF
In 2021, something significant happened when the first Bitcoin Exchange-Traded Fund (ETF) was introduced on the New York Stock Exchange. This marked a notable milestone, providing a more traditional way to invest in cryptocurrencies.
With the BITO Bitcoin ETF, regular investors now have the option to purchase cryptocurrency through their usual investment platforms, such as Fidelity or Vanguard accounts.
However, there are some concerns about the BITO ETF. It doesn’t directly hold Bitcoin; instead, it’s linked to Bitcoin through futures contracts. While these contracts generally follow Bitcoin’s price trends, they might not always mirror its price. Consequently, some investors might prefer to wait for an ETF that directly holds Bitcoin.
In this context, the Securities and Exchange Commission (SEC) had previously considered approving ETFs, but BITO is the first to receive approval. It’s important to note that investing in a crypto ETF like BITO still carries risks, just like any other cryptocurrency investment.
Bitcoin Facing Continued Pressure
Despite reaching a peak of approximately $70,000 in 2021, Bitcoin’s value may continue to be under pressure. The year started with Bitcoin at $29,000, and the significant gains have led many investors to anticipate a bearish trend for the leading cryptocurrency in 2023.
Some experts even predict that Bitcoin could potentially erase all the gains it accumulated over the past year and a half. Conversely, some experts believe that Bitcoin could surpass the $100,000 mark.
Expected Growth in the NFT Market
NFTs have opened up decentralized funding opportunities, greatly benefiting artists and creators by providing them more financial freedom for their creative endeavors.
One positive aspect of NFTs is their security, thanks to blockchain technology. They also play a crucial role in verifying the ownership of digital assets.
NFTs are gaining popularity among artists and creators because of their advantages. Experts predict that the NFT market’s value may continue to rise in the cryptocurrency market.
Speculation will continue to surround cryptocurrency, but it’s important to remember that it’s still a relatively new form of investment. Therefore, keeping an eye on emerging trends is essential.
As entrepreneurs in the business world, you might consider developing a robust crypto application to cater to investors. While cryptocurrency’s future will likely have its ups and downs, current trends appear positive, making it an opportune time to explore the crypto landscape. You may also visit XChanger, the best Cryptocurrency exchange in Pakistan to get better experience of Crypto trading.