2023 Crypto Assets Market Outlook

The year 2022 was a challenging year for the Crypto Assets market. The global interest rate hike put tremendous pressure on various assets, and the Crypto Assets were no exception. Some events that occurred within the market, such as the collapse of a well-known trading platform, further dealt a heavy blow to the industry.

These events highlight the trust issues inherent in traditional centralized trading models. To address this, various institutions in the industry are actively exploring a more transparent and healthy trading ecosystem. The development of decentralized exchanges and the process of compliance are both possible directions.

It is worth noting that the financial issues of a certain large Crypto Assets company do not seem to have further deteriorated recently. The large-scale asset liquidation risk that the market was concerned about has not materialized for the time being, which has alleviated downward pressure to some extent.

The development of Ethereum has injected a shot of adrenaline into the market. The Ethereum Foundation has confirmed that the Shanghai upgrade will proceed as scheduled, which will address the long-standing staking liquidity issue troubling the market. Historical experience shows that major upgrades of Ethereum are often chosen to occur in favorable macro environments, so the timing of this upgrade is worth paying attention to.

In addition, several Layer 2 network projects based on ZK technology plan to launch testnets or mainnets in the second half of 2023, which also brings new expectations for the industry.

From a cyclical perspective, Bitcoin is about 470 days away from the next halving. If historical patterns repeat, a new market cycle may begin to take shape by the end of this year. At the same time, the current bear market has lasted for more than a year, and according to the characteristics of the crypto assets market where "bulls are short and bears are long," the toughest times may be behind us.

Considering various factors, the Crypto Assets market is expected to gradually regain confidence and look for new growth momentum in 2023. A wave of market hotspots may appear in the second quarter, and the fourth quarter may see another market upturn. Unless there are extreme black swan events or severe deterioration in the macro environment, the current market is likely to have bottomed out, and a more concentrated upward trend is expected next year.

In the new year, I wish all Crypto Assets enthusiasts to maintain firm beliefs and reap abundant results.