After the horror year 2022, the market will regain stability in the new year. In 2023, the focus should be patient investment. Autumn: from 2024. By Gerd Weger
At the beginning of the year, after a year of horrors, things could look forward again. The windows left by the collapse of Terra in May and the crypto exchange FTX in November are slowly being addressed. The American branch of the world’s largest crypto exchange Binance wants to take over the assets of the bankrupt loan service Voyager Digital, which is worth over one billion US dollars. Voyager collapsed after the Terra crash, was taken over by FTX, which itself went bankrupt shortly after. Overall, more stability can be expected in the crypto market again in the new year 2023. Bad players like Terra and FTX are likely to come into focus sooner in the future as the market has become much more sensitive to such scams and manipulations.
Cryptocurrencies: Crypto winters don’t last forever
Crypto winters don’t last forever. There could easily still be an ultimate sale. Compared to the duration of the previous major crypto winters of 2014 and 2018, the current crypto winter would now be over. But there are still enough stressors in the short term. In addition to the known ones, such as the ongoing crises and rising interest rates, there are also some crypto market-specific factors. After several delays, 141,000 Bitcoin and the same amount of Bitcoin Cash could soon be paid out to the victims of the Mt.Gox collapse. By January 10, 2023 at the latest, injured parties must register with a law firm in Tokyo. As options for the repayment, the creditors can choose between a normal bank transfer and a payout in cryptocurrency.
This is how it will continue in 2023 for Bitcoin and Ethereum
More supply pressure can also be expected for the second largest cryptocurrency, Ether. With Ethereum’s Shanghai upgrade scheduled for March 2023, ether previously locked in play could then be withdrawn and sold. After all, there are currently 15 million ethers on the Beacon Chain and thus about twelve percent of the total pieces in circulation. The release of these staked ethers could push the price, also considering the sharply falling stocks on crypto exchanges after the FTX crash. It therefore remains exciting to see if Ether can continue the strength it has gained since the middle of the year against Bitcoin in the new year.
Over the past three years, Ethereum’s share of the total crypto market value (dominance) has increased from 7.0 to 18 percent. By contrast, Bitcoin dominance fell from 68 to nearly 40 percent over the same period. A sensible basic investment in the crypto market should consist of these two largest cryptocurrencies. The investment amount for this basic investment will be divided roughly in proportion to the market value. According to the current status: about 70 percent in Bitcoin and 30 percent in Ether. As already mentioned several times, such a basic investment should be gradually built up via savings. If you implement this strategy, you will then create a solid foundation with the average purchase prices to enjoy tax-free the expected large price increase from 2024.
By the way: With the new BÖRSE ONLINE Best of Crypto index, you can invest directly in ten major cryptocurrencies with a certificate traded in Germany. Including Bitcoin and Ethereum.
Notice of conflicts of interest
CEO and majority owner of the publisher Börsenmedien AG, Mr. Bernd Förtsch, has taken direct and indirect positions on the following financial instruments mentioned in the publication or related derivatives that may benefit from any price development resulting from the publication: Bitcoin, Ethereum
Notice of conflicts of interest:
The price of the financial instruments is derived from an index as an underlying. Börsenmedien AG has developed this index and owns the rights to it. Börsenmedien AG has entered into a cooperation agreement with the issuer of the presented securities, according to which it grants the issuer a license to use the index. In this connection, Börsenmedien AG receives remuneration from the issuer.