, , , , ,

Bitwise: “The Next Bull Will Be The Biggest”

Asset management and cryptocurrency company Bitwise started 2023 with an ambitious analysis. The company, which published a long 11-item analysis article on its official website, made some detailed and very controversial predictions. Stating that the crypto money market moves in 4-year cycles, three of them are the year of rise and one of them is the year of decline, Bitwise stated that the year 2022 confirms this model:

“According to our analysis, as we enter 2023, the crypto market is positioned to show an improvement… Of course, this will not be easy. The fraudulent collapse of FTX and the dark area created by the crypto lending industry have reduced confidence. The market may move sideways for a while. However, “Then it will enter the bull market. We believe the next bull will be the biggest bull market. Mainstream adaptation will begin. Crypto has rebounded and will bounce back after every major pullback.”

Stating that Coinbase and many crypto companies completed 2022 with decreases, Bitwise wrote that he expects a 100% growth in the US stock market in 2023. Company analysts also noted that Uniswap volume will also outpace Coinbase:

“The shares of Coinbase have dropped 86% in 2022. Coinbase has seen great development and growth from 2018 to 2022. It has turned into a complete giant company. It is now the most reliable and most customerized exchange in the USA… Just take our word for it. Don’t worry, many analysts point to Coinbase’s share price at $71. This is roughly twice the level on January 8th. It should be noted that decentralized exchanges also increased their market share in 2022. The loss of confidence of centralized exchanges benefited them. We expect this trend to increase in 2023 as well. We even foresee Uniswap to surpass Coinbase, the largest US exchange.”

Noting that stablecoins are one of the most important components of the crypto markets, analysts said that USDC will also surpass USDT:

“More than $130 billion in assets under management in stablecoins… The biggest shares of this figure are USDT with $66 billion and USDC with $44 billion… Tether is generally still unregulated, while USDC is US-based and backed by Circle and Coinbase. It represents the more regulated side for the market. We expect USDC to surpass USDT by the end of the year as investors will now demand greater transparency in 2023.”

Emphasizing the decrease in the number of Ether issued in Ethereum, Bitwise analysts wrote that this situation will continue in 2023:

“Ethereum’s transition from PoW to PoS has resulted in a huge reduction in the number of Ether issued per day. Because PoS is a much more efficient system than PoW. When you combine this under-mining situation with the burn that occurs when people enter the network, the theoretical As a result, there is a factor where the supply of Ethereum decreases. We think it will continue in the same way in 2023.”

Commenting again on the importance of the transition from PoW to PoS, the company stated that it expects the staked Ether rate to increase in 2023:

“As of January 5, 2023, $21 billion worth of ETH is staked on the network. We expect this figure, which corresponds to 14 percent of the total supply, to increase in 2023. After the Shanghai update in 2023, the staked Ethereums will be unlocked. This situation has some analysts. It will create a big selling pressure according to our opinion, but it will not happen in our opinion. Because big sells are not possible in the short term. Shanghai update imposes a limit on the number of ETHs to be mined from the stake. This will break the selling pressure. Also, in the future periods, Ether’s unlocking will help people more We think it will pave the way for more ETH lockdowns.”

In the analysis, it was also stated that the bankruptcy of FTX, which sank in 2022, started a great wave of distrust in the market, while the expectation that a large crypto company with a valuation of over $ 1 billion would go bankrupt in 2023. It was stated that in 2023, when the correlation between crypto money markets and stock markets is expected to be broken, a positive law from the US Congress is also likely to be passed.

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published.