After the dreadful 2018 crypto winter, 2022 marked the beginning of a new bear period marked by the failure of leading crypto businesses. This was also accompanied by the sudden drop in the value of cryptocurrencies and the greater global market meltdown. This has now led to the dilemma of what the direction of the crypto market will be for the year next 2023. So, what’s in store for cryptocurrencies in the coming period?
Will cryptocurrencies face another crash?
Extensive research on the net flow and historical indicators of the crypto exchange determines the direction of the market. According to research, leading crypto analysts in the industry have formed many hypotheses. According to the data, the net flow will become positive as it approaches zero. This results in fewer buyers and more sellers. At the same time that net flow turns positive, a local top is likely to be observed, followed by increased selling pressure on the future market.
This could lead to a continuation of the downtrend and the loss of support already present. “Exchange net flow” is an indicator that measures the total net amount of cryptocurrency entering or leaving the wallets of all centralized exchanges. This metric can be positive or negative. The value is determined by subtracting the total amount of funds brought into the exchange from the total amount issued.
Has Bitcoin price bottomed out?
According to experts, the price of Bitcoin (BTC) will likely fall even more, given that the top cryptocurrency is not yet undervalued or bottomed out. Also, the degree of volatility seen in stablecoin inflows traded on spot exchanges has reached an all-time high. This suggests that Bitcoin may start a bull run or break to a new low in the near future. cryptocoin.comBitcoin’s price is currently trading at $16,532, according to data.
Analyst: We can’t escape crypto
While the above analysis is a little scary, most analyzes are hopeful for the field. For example, the anonymous server of InvestAnswers says that even if the industry goes through a tough 2022, cryptocurrencies are inevitable. The presenter pointed to a report by Ryan Selkis, CEO of crypto analytics firm Messari. He talked about the increasing adoption rate of Bitcoin and other Blockchain technologies. He says this ratio is reason to be optimistic about the emerging asset class. The analyst uses the following statements:
It’s been a terrible, terrible year. But crypto is inevitable. Bitcoin emerges as legal tender for some emerging economies, stablecoins are growing like wildfire, [Web3] computing is happening at an astronomical rate. DeFi has proven to be more reliable than CeFi. DAOs can scale assets at internet speed.
According to the crypto trader, the huge amount of negative news the field has faced this year has changed nothing. These developments have not stopped the development of the underlying infrastructure needed to support global crypto adoption. However, the analyst added that the market has seen a significant outflow in terms of venture capital.