For bitcoin and cryptocurrencies, 2023 may not be what you think!

Last year was literally a terrible year for cryptocurrency investors. 2022 has gone down in history as one of the most difficult years for cryptocurrencies. Aggressive Fed interest rate hikes, numerous cryptocurrency fiascos, and more. However, some investors are expecting an even bigger drop in 2023. So whose expectations will come true? What will 2023 be like for cryptocurrencies and bitcoin?

Bitcoin in 2023

Every downturn period seems like it will last forever. If you think back to 2018 or the pandemic period, you get the feeling that it's all behind us. The emotions felt by investors in those days and today are the same, especially those with experience will understand much better what I have to say. Bitcoin, which reached the $70,000 milestone in November 2021, closed 2022 with a 65% loss. The opposite was happening in November than it is today. The big crowds kept saying the price would get to $100,000,000 or even beyond. Just like the crowds targeting $12,000 today.
I know we all have reason to be optimistic about 2023. Personally, I hope bitcoin will treat investors much better this year. If, of course, that fog cloud dissipates. There is a chance that bitcoin will have a much better year in 2023 than it did in 2022, but there will be no repeat of 2021.

Cryptocurrency forecast for 2023

Optimistic expectations are based on hope for a change in Fed policy and 4-year cycles. Bitcoin's price behavior during (and between) periods of halving gives investors hope. In the past, bitcoin has typically bottomed out about a year and a half after another decline (lowering miners' fees). So the fact that it is less than 18 months away from May 2024 makes buying today extremely attractive, as we have likely bottomed out and further risk seems minimal.

But even more important is what bitcoin will do before the next halving. On average, by the time the next halving occurs, bitcoin's price is usually within 60 percent of its previous all-time high. If it follows this pattern again, Bitcoin should be around $40,000 by May 2024. What happened in the past need not happen again in the future. But for such a young and volatile industry, it is impossible to ignore cycles. At worst, we know that in the past bitcoin has experienced an average growth rate of 70% after negative years. Accordingly, bitcoin should rise to $28,000 in 2023. That could bring altcoins a return in excess of 200%.
Of course, these are all expectations. And expectations don't necessarily have to be realized.