The Potential Game Changer Trends for Crypto – Cryptopolitan

After the crash of cryptocurrency markets in late 2021, when bitcoin lost more than half of its value, investors and traders wondered whether 2023 would be a year of recovery or further decline. So far, the benchmark has risen more than 30% since January 1st, a change that could mean very good things for crypto enthusiasts. But will that mini-trend hold or give way to another free fall? There are no sure ways to predict how the most volatile asset class will behave in the short term or over many years.

But those who want answers and are ready to enter the market can get a sense of the state of the sector from five indicators. In addition to the general stock market adoption rate, it is important to examine the brokerage firm’s acceptance of virtual currencies, national tax laws, the growth of retail transactions and any sign of a potential price rally since the massive drop of 2022. How might all the latest developments affect the cryptocurrency market this year? Review the relevant indicators and decide for yourself what is in store for the second, third and fourth quarters of 2023.

Stock market adoption

In Israel, regulators are struggling to decide how to classify assets such as ethereum and bitcoin. There is a concerted push from investors and brokerage firms to allow people to buy and sell digital assets within standard accounts. Recent backlash from Israel’s government is stalling the movement as lawmakers seek to categorize the digital currencies as securities, which could essentially decimate the burgeoning marketplace for the top coins. One country is an isolated case, but Israel’s situation is emblematic of what is happening in dozens of developed countries.

Broker acceptance

Less than a decade ago, many had to look far and wide to find brokers dealing with cryptocurrency. Slowly, more online and traditional firms started offering bitcoin, ethereum and several other major coins as part of their asset menus. Today, account holders trading cryptos with a regulated broker number in the millions and live in dozens of nations on multiple continents.

Gone are the days when casual crypto enthusiasts and more serious traders had to search for top-rated brokers that offered crypto-related services. The general inclusion of digital and virtual forms of money among more standard assets, such as stocks and commodities, has already deeply affected the wider market. Not only do new account holders expect to see virtual assets on their main menus, but they use the coins to make retail purchases, fill savings accounts and make speculative trades.

Tax laws

Tax laws in the US, Europe and parts of Asia are tipping to be crypto-friendly. For investors, this means that they can freely buy and sell the assets although they must report the transactions on their annual income return. Authorities in developed countries use different approaches to reporting. Some allow citizens to categorize bitcoin and similar holdings as securities, such as stocks and bonds, with similar reporting requirements. In 2023, new tax laws in the US and elsewhere could lay the groundwork for long-term stability in the digital currency markets by finally settling the question of how to report assets on official documents.

Online and POS transactions

The rapid transformation of the electronic marketplace has helped push non-fiat currencies into the mainstream. Even POS purchases (point of sale) in traditional retail outlets have followed the same pattern. More merchants are willing to accept crypto as a valid form of money. Most of the large online stores add the method to their shopping and payment carts, while convenience stores and physical sellers do the same. Daily transactions represent a huge growth area for ethereum, cardano and several other leading digital assets.

Market rebound and stabilization

The prices of top coins have already started to rise significantly since the beginning of the year. While they haven’t recovered from the late 2022 selloff and crash, some have posted significant gains since January 1. Bitcoin has added almost a third to its total value in that time. It is worth noting that even in the midst of a historic fall late last year, the volatile segment has achieved a degree of stabilization.

Looking at recent charts of the top coins, investors can argue that prices have at least stabilized or bottomed out. Whether a prolonged period of stability turns into a recovery or rebound remains to be seen. However, other trends in the niche give market watchers reason to be optimistic. Tax legislation and government regulation are still the big question mark. From the consumer’s point of view, there has been a strong move towards general acceptance of virtual money.