VanEck, the New York-based investment group, has released its long-term cryptocurrency outlook for 2023, echoing the sentiments of many industry analysts.
What Happened: As the crypto industry continues to evolve and develop, VanEck has identified its top predictions for 2023.
Bitcoin BTC/USD is expected to reach $10,000 to $12,000 in the first quarter of 2023, triggering a wave of miner bankruptcies, as per the company.
In the second half of 2023, VanEck expects Bitcoin to surge to new all-time high of $30,000. Lower inflation, eased energy concerns, a possible truce in Ukraine, and an upturn in M2 supply will all be key drivers in propelling the beginning of a new bull market for Bitcoin.
Financial institutions are set to tokenize more than $10 billion in off-chain assets. VanEck's prediction comes as a growing number of organizations, including major institutions, have shown interest in the tokenization space in recent months.
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Brazil is set to become one of the most crypto-friendly countries in the world, pledging to tokenize a portion of its sovereign debt offerings on the blockchain.
What's Next: VanEck notes that Twitter is well-positioned to become a major player in the payments industry by leveraging state money licenses. “We expect Elon Musk to implement payments functionality more akin to WeChat Pay, which would let consumers pay merchants for services,” the company said in a blog post.
The investment firm predicts that Russia, which has traditionally been heavily dependent on oil exports, is likely to announce that it will begin adding Bitcoin and other digital assets to its sovereign wealth fund.
On the stablecoin front, VanEck forecasts that a new decentralized stablecoin is set to reach a staggering $1 billion market cap in 2021, even after the collapse of LUNA and its algorithmic stablecoin UST UST/USD losing its peg.
Ripple XRP/USD could be headed to a devastating loss in its fight against the Securities Exchange Commission, warns VanEcK. The financial services firm believes the lawsuit is unlikely to end in the crypto-assets company's favor.
The number of monthly web3 gamers is set to skyrocket from 2 million to 20 million as new triple-A games become available.
Lastly, Ethereum ETH/USD will now enable convenient and secure withdrawals from the Beacon Chain.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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