Looking back at 2022, Bitcoin and other cryptocurrencies have suffered greatly, but eToro analyst Josh Gilbert gives his analysis for 2023, with a more optimistic outlook.
The start of the new year is an opportune time to review one’s market strategies, put all the crises of 2022 behind them, and start again with new investments.
The past year has definitely put investors in a very uncomfortable position, from the collapse of the Terra/Luna ecosystem to the surprise failure of FTX.
It was Bitcoin that suffered the most, which influenced by these external factors saw its asset lose about 65% in 2022. However, according to Josh Gilbert, although declining, Bitcoin is not breaking out of support and this could mean a potential uptrend for the world’s most capitalized cryptocurrency.
Bitcoin’s future according to eToro market analyst
The start of 2023 has pushed Bitcoin above $17,000, the result combined with positive US employment data that suggests the US may avoid recession.
Inflation is one of the main factors driving the whole market including Bitcoin, a drop in the US CPI (Consumer Price Index) is expected this week.
An event that could drive the market positively, giving an upward push to 2023.
If inflation continued to fall steadily, investors would undoubtedly be more motivated and the market would have the right stimulus to veer into a positive trend.
Bitcoin and the other cryptocurrencies in 2022 have only suffered drastic declines due to factors external to their assets, in fact cryptocurrencies over the past year have sharply improved their security ratios, consumer usability, and also veered toward being more environmentally friendly.
Just think of the major innovations initiated with Bitcoin’s Lightning Network and Ethereum’s Merge.
So, there is little to say regarding Bitcoin, Gilbert is optimistic in a potential upward trend that will see the cryptocurrency dominate the market once again.
The possible trends according to Josh Gilbert
If this 2023 was indeed poised for low inflation rates, and similarly low interest rates, Josh Gilbert along with eToro, provided several potentially reliable trends for the new year.
First, the potential bullish market: it is clear that if Bitcoin and other cryptocurrencies take a positive trend, consequently the whole market would be affected by these trends. Therefore, what Josh Gilbert hints at is a possible end to the bear market, and the beginning of a bullish market trend.
“Forward-looking investors will see this mix as the pitch for the next bullish market. I think we can start to look less defensive as inflation starts to come down.”
Then one piece of advice Josh Gilbert provided is that of diversification, namely a diversified portfolio. In fact, according to the market analyst, a diversified portfolio can lead to potentially more reliable and undoubtedly safer investments.
He therefore recommends investing in new markets through ETFs and platform-based baskets:
“Although the assets have a common theme, they can span different subsectors, regions and even different asset classes.”
Clean energy is one of the hottest trends in blockchain and cryptocurrency.
Giving us another certainty is Josh Gilbert:
“This clearly shows that investors are adopting a long-term mindset. We may not see some of the renewable energy stocks really come to fruition for many years, but these trends are not short-term and will probably be an important part of investors’ lives for many years.”
Clean energy investments are growing exponentially, and according to many, clean energy is the central investment theme in 2023.
As the latest trend In 2023, Gilbert predicts more interest in CFDs as a means of diversification. Now, CFDs are not a direct investment in an asset. Rather, they are a trading contract that allows investors to make gains or losses depending on changes in the price of the underlying asset.
“One of the biggest deadly sins beginners make in CFD trading is opening positions without a defined strategy. Create and test CFD trading strategies before committing too much money to your trading account.”