The cryptocurrency market recorded a 1% gain in the last 24 hours and its total market capitalization rose to $894 billion. This represents an increase of 6.5% over the past two weeks, raising hopes that the market may have turned a corner after a difficult 2022.
There is no doubt that the last year has not been particularly good in the field of cryptocurrency. The Terra and FTX Collapses, as well as the 64% price drop, are examples of this. However, besides the fact that the market has rallied a bit in recent days, various macro indicators suggest that 2023 could be the year of stronger recoveries.
Indeed, we are witnessing not only an easing of inflation in various countries and an increase in employment. In addition, bond yields, particularly those of US treasury bonds, suggest that interest rates will fall below 5% this year, which is less than some analysts feared. This forecast is very good news for speculative risky assets such as the bitcoin and cryptocurrencies, which could spend much of this year making up for last year’s losses.
Why could cryptocurrency prices see a significant rally in 2023?
In a speech explaining why bonds are currently good news for venture investors, fixed income manager Jeffrey Gundlach argued that they are a more reliable indicator of future interest rates than hints and informal comments from the heads of the Federal Reserve.
Indeed, during a webcast on Tuesday, the CIO of DoubleLine Capital said, “My over 40 years of experience in finance strongly advises investors to watch what the market is saying rather than what the Fed is saying.”
Right now the market is saying the base rate of the Fed may not increase much more than its current level, which is between 4.25% and 4.5%. This is because Treasury yields are trading below the Fed’s official range. So even the two-year rate ended yesterday slightly below 4.25%.
In other words, the market does not buy and sell bonds with higher rates because it does not believe, in principle, that the Federal Reserve will actually raise its own rates. He does not see the need to charge rates of 5% or more, as he does not believe that the Fed official rates will increase this year.
Consequently, the american central bank could start cutting rates again as 2023 progresses, which would be favorable for risky assets such as cryptocurrencies. Indeed, falling rates make high-yielding assets more attractive to investors. This is partly because bonds won’t offer such high yields, and because falling rates indicate an increase in the money supply.
Improved macroeconomic situation
In return, investors should expect rising cryptocurrency prices. Of course, it also depends on other macroeconomic factors. In this context, the war in Ukraine and rising inflation have all dented the prices of bitcoin and tech stocks over the past year.
Fortunately, there are signs that the environment may be slowly improving. Inflation in the United States has fallen for two consecutive months, going from 9.1% in July to 7.1% in November. The decline was aided by falling oil prices, with US crude oil falling to just over $73 last week from a 13-year high of $130 in March. .
Thereby, a drop in prices does not make the case for higher interest rates, while a decrease in economic activity strengthens the case for lower rates. The past few weeks have seen contractions in many major economies. This is the case of the American services sector, which contracted in December for the first time in two and a half years.
Now that the Fed and other central banks around the world have slowed inflation growth, they could begin to reverse the trend by 2023, especially if economic activity continues to slow. We are already observing UK GDP reductions and in China, particularly in the manufacturing sector. Other major nations are predicting similar phenomena, starting with Germany and France.
Therefore, it is very likely that central banks will start to act to stimulate economic growth again. Again, this implies lower interest rates and, by extension, an increase in the money supply. In effect, the more money, the more investments and speculation.
This includes investing in cryptocurrencies. Of course, it’s hard to say how much digital currencies like bitcoin will gain this year, but since many of them have lost between 65% and 90% of their value in 2022, returns could be substantial.
It goes without saying that things will not happen overnight. But with the fall in inflation and keeping bond yields low, it looks like the long process of economic transition is just beginning.
New altcoins could benefit the most
When the next market rise comes, it is likely that the altcoins newer ones will benefit more than established cryptocurrencies such as the bitcoin and ethereum. So, the tokens that are currently on presale could be among the biggest winners, given that they are starting from such a small base.
Even in the context of last year’s market decline, some pre-sale tokens saw very strong profits after their first listing. For exemple, Tamadoge (TAMA) was up 1,800% from its presale price in October, while Lucky Block (LBLOCK) was up 6,000% from a sale price of $0.00015.
The three currencies below are currently on presale, and each of them they have fundamental characteristics which should help them achieve good results. This will be particularly the case if they are quoted during a general market recovery.
Meta Masters Guild (MEMAG)
Meta Masters Guild stands as one of the newest and most exciting projects in the cryptocurrency ecosystem. It is a mobile-focused gaming guild for the web3 and play-to-earn industry. Based on the Ethereum network, the platform will create many blockchain-based games with playable NFTs. Additionally, it will award rewards in the form of its native MEMAG token, which can also be staked and traded.
The presale started at the end of last year and the price of 1 MEMAG is currently $0.007. This price will increase in the next leg of the sale, which is expected to begin in just over nine days. The presale is expected to take place in a total of seven stages, with the seventh stage setting the price of 1 MEMAG at $0.023.
The presale will be for 350,000,000 of MEMAG, which will raise around $4,970,000 if they are all sold. This equates to 35% of the maximum total supply of 1 billion MEMAG, 50% of which will be locked up for at least three years before it can be sold.
Fight Out (FGHT)
Fight Out (FGHT) is an Ethereum-based platform that combines real workouts and Web3. Unlike previous M2E apps, it will track and reward a much wider range of workouts. These include boxing, weightlifting and yoga. It will also offer a series of classes online and in its own branded gyms.
The pre-sale of its token started in December and it has already raised more than $2.8 million. Currently, an FGHT token sells for $0.0166. The presale is expected to end in the second quarter of 2023, when the company will make its first listing and launch its app.
C+Load (CCHG), which runs on BNB Chain, is a peer-to-peer payment platform for electric vehicle (EV) charging stations. It launched the presale of its token in December. The main objective is to use blockchain and cryptocurrencies to expand access to carbon credits. The CCHG token will be used within its platform by EV owners to pay for charging their vehicles.
Additionally, C+Charge will reward users with carbon credits based on NFT technology for charging their electric vehicle at its stations, which will encourage people to go green. C+Charge has already signed partnerships with Flowcarbon and with Perfect Solutions Turkey, adding 20% of EV chargers in Turkey to its platform.
Given this rapid progress, C+Charge represents another new platform well on its way to realizing have a great year 2023.
We wish to give thanks to the writer of this short article for this incredible material
Cryptocurrency prices could explode exponentially in 2023
Find here our social media accounts as well as other pages that are related to them.https://metfabtech.com/related-pages/