Exness' analyst about the crypto dark horse of 2023: It would probably be better to focus on surviving the winter first, especially given that more bankruptcies and negativity might be around the corner.
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Crypto industry seems to be in one of the most tempting periods in its history as after a turbulent 2022, it's time to finally get down to business and improve some regulations and "stability" of the crypto exchanges. Michael Stark, analyst at Exness shares his views on 2023 with us and also points a probable dark horse of the year, which some may find surprising.
How will the price of the most important cryptocurrencies change in 2023 - Bitcoin, Ethereum, Dogecoin? Please justify the forecast.
Michael Stark (Exness): It's impossible to predict how crypto will move in 2023 at the moment because this depends very heavily on how quickly inflation comes down and how central banks move over the second and third quarters. The 'base case' seems to be a limited recovery by crypto, with bitcoin and most major altcoins making some gains and volatility possibly increasing.
Unless there's a sudden resurgence in inflation, which currently looks very unlikely, central banks are likely to stay the course without many more large hikes in major, advanced economies. As of now, the possibility of inflation declining sharply and central banks scrambling to drive it back up to 2% seems very remote, but this scenario should be considered if there's a deeper recession than expected.
Which cryptocurrency may turn out to be the "dark horse" of 2023 and bring excessive profits to its owners?
I think it could be Cronos, formerly crypto.com coin. Every significant cryptocurrency was down sharply last year, but the exchange-specific ones were some of the hardest hit because the public's trust in exchanges collapsed after the FTX scandal. However, crypto.com has so far been among the less affected large crypto companies, and with its user base growing and rewards remaining fairly popular, there could be significant demand for Cronos.
Read next: Bartosz Milczarek, CEO at Cryptiony: Customers settle the crypto tax in annual returns, so our business model is also based on annual subscriptions | FXMAG.COM
Having said that, looking for any dark horse in crypto markets now seems quite difficult. It would probably be better to focus on surviving the winter first, especially given that more bankruptcies and negativity might be around the corner.
