Advisory giant Fool analysts shared their 2023 predictions for a trending cryptocurrency that has managed to quickly recover from each bear market.
The only cryptocurrency to buy right now, according to Fool analysts
The cryptocurrency market is starting to warm up again after a devastating 2022, when it lost nearly two-thirds of its total value. High-profile bankruptcies that have completely destroyed trust in cryptocurrencies have taught investors and the community a lot over the past year.
The bullish tone is welcome news for cryptocurrency investors looking to invest money to work in the volatile industry. According to Fool analysts, among more than 22,000 various altcoins, Bitcoin (BTC) is currently the only cryptocurrency that can be bought without hesitation.
A strong start to 2023
BTC has collapsed 65% since reaching ATH at $69,000 in November 2021. The aggressive interest rate hikes that the Federal Reserve implemented to curb rising inflation helped shift investor sentiment from positive to negative. This also negatively impacted many growth tech stocks as speculative markets fell hard.
However, the mood seems to be back to optimism as inflation, measured by the widely followed Consumer Price Index, continues to show signs of cooling off. The entire cryptocurrency market has gained 34% in January, and Bitcoin is up 37% this month. Perhaps investors are waiting for the Federal Reserve to return to a more cohesive stance sooner rather than later.
Of course, it is obvious that Bitcoin’s short-term price movements are heavily influenced by changes in monetary policy. So trying to predict what will happen next is almost impossible. Encouraging is the renewed optimism surrounding Bitcoin right now. This atmosphere could help attract more interest in the world’s top cryptocurrency, something that could support an ongoing bull run in 2023, according to Fool analysts.
Crypto adoption: Bitcoin becomes a legitimate financial product
Along with some recent positive momentum, Bitcoin is on its way to becoming a legitimate financial asset. For example, investors can buy Bitcoin through Block’s Cash App, Coinbase, or Robinhood Markets. Also, there are a number of exchange-traded funds (ETFs) on the market that help make investing in Bitcoin easier.
Individual investors can get their cues from some well-known capital distributors to buy BTC. Famous tech investor Cathie Wood is extremely optimistic about Bitcoin. Bill Miller, one of the most successful value investors ever, recently said that Bitcoin is one of his most important personal assets.
Then there is the regulatory landscape to consider. A state senator from Arizona recently passed a bill to make Bitcoin a legal tender in the state, similar to what happened in El Salvador in late 2021. No one can predict whether this will pass, but progress is showing.
The most important catalyst for the leading cryptocurrency
Bitcoin allows two parties to send and receive money directly to each other without a central intermediary. This is undoubtedly a groundbreaking innovation. However, Bitcoin’s most important feature may be its absolute scarcity. Only 21 million BTC will be mined and that is something that will not change.
About every four years, the Bitcoin network goes through an event called a “halving,” when the block rewards miners receive are halved. In the time leading up to this event, Bitcoin started to show a historically bullish trend. The last halving took place in May 2020 and the next halving is expected to occur in March 2024.
Meanwhile, according to CoinShares’ weekly fund flow report, it should be noted that institutional investors are taking a step away from Bitcoin. As we quoted as Kriptokoin.com, these 4 altcoins were seeing positive entries while Bitcoin was losing funds this week.
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