Cryptocurrency market capitalization will jump to $1.5 trillion in the first half of 2023. This forecast was voiced by analysts of the Korean cryptocurrency exchange Korbit. According to experts, the growth will be due to two reasons.
The first reason for growth is addressing the issue of blockchain scalability. According to Korbit, as new technological solutions with greater bandwidth appear, institutional investors will “inject” more capital into the market.
The second reason is the improvement of the macroeconomic environment. According to the crypto exchange, the US Federal Reserve will no longer have reasons to maintain a tight monetary policy. If the American financial regulator really stops its policy, and the industry finds a solution to scale, then the market may repeat the scenario of 2019. Recall that then bitcoin on an annual scale grew from ~$3,500 to ~$12,100.
The flow of money is maintained.
The influx of money into the cryptocurrency market continues even despite the “crypto winter”. According to a Pitchbook study, venture capital investments in the cryptocurrency industry reached almost $20 billion in the first nine months of 2022. This figure reflects a 41% increase compared to the result for the same period in 2021.
According to Pitchbook, in the third quarter of 2022, venture capital funds invested $1.5 billion in Web3 startups. Thus, the annual increase was 44.5%. If the indicator can maintain its current momentum, then investor interest could set the sector off to a good start in 2023.
