Will Crypto Recover in 2023? Quite Possibly, and Here’s Why

Guest Post | Jan 8, 2023

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Following the massive collapse in the crypto market recently, everyone is panicking about what will happen next. Is long-term recovery anywhere in sight? Is this a safe way to keep your money at all? Could something unexpected happen again soon?

These are all perfectly legit questions, and although there are no guaranteed answers, there are certain things that we can say to partially assuage nervous investors.

People will be on the lookout for fraud

Following collapse of FTX and the arrest of Sam Bankman-Fried in his massive fraud scandal, people are starting to wake up to the potential dangers involved in handling cryptocurrencies. This is not to suggest that there could never again be another scandal. Of course, such things are possible in any realm.

But people and institutions will behave more cautiously after this, and especially in the period immediately following the crash as markets are still shaking from the shock.

The stock market itself hasn’t yet recovered

Another thing to consider is that everything is at a low point now, and for a variety of reasons. Covid, the war in Ukraine, unrest in many places…there are a lot of factors influencing the markets now that will eventually become less prominent in terms of their effect on global dynamics. Interest rates are high, and they are expected to be cut in the first quarter of 2023. Markets will go up in general at this time, so keep your eyes open for an overall recovery soon.

There have been lows before

Just as with the regular stock market, the crypto market has experienced ebbs and flows in the past. Every time there is a major hit, people start to panic. Remember, there were several big crashes in 2012-2013, including a massive Ponzi scheme in 2012. Then Bitcoin experienced a major bubble that burst in 2018, sending prices plummeting. And of course the pandemic wasn’t friendly towards cryptocurrencies, either, as people lost money everywhere and crypto went down along with it.

But at the end of each of these cycles, the currencies bounced back. And not only that, but in general big dips have been followed by significant bull runs. Of course, we cannot predict exactly when this will happen this time, but you can be fairly confident that a recovery is on the horizon somewhere because it is simply the nature of the beast.

Crypto affects many more people than just casual investors, and in many ways

Also, it would be wise to think about the number of things that have been being built upon the cryptos and their associated technology for years already.

Take e-wallets, for example. They have been gradually rising in popularity, and their usage base crosses geographical and socioeconomic boundaries. For example, they have become in poorer countries where standard forms of payment are not acceptable. People are getting used to the convenience of them, and this isn't likely to go away anytime soon. Buidlbee provides useful information and tips for people looking to use e-wallets, understand the risks involved, and get a better picture of the crypto situation overall.

Also, because of the incompatibility of many different kinds of currencies, crypto is a popular way for people to send remittances to their home countries. This kind of convenience isn't going to be replaced any time soon, so there will almost certainly remain a need for some international currency that can be used and transferred across difficult borders.

Blockchain is growing in general

Let’s also remember that blockchain isn’t going anywhere. In fact, its uses are blossoming in many new directions, with applications in medicine, logistics, gaming, and other areas, and the technology is becoming far too convenient to ignore. So it isn’t something that can be brushed aside easily.

Keep your eyes open in general, and also on specific currencies

A good rule of thumb is to keep watching the trends. While you can’t predict everything that might affect the markets, you can watch out for overall changes and read up on experts’ opinions about where things seem to be headed. Also, take a look at cryptos that seem to be getting stronger this year. And look beyond the usual ones as you never know what might be on the rise.

Most importantly, keep it all in stride. Like anything that grows, there will be pains involved; you just need to make wise judgments about how great these pains will be and when they will likely subside.


NCFA Jan 2018 resize - Will Crypto Recover in 2023? Quite Possibly, and Here’s WhyThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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