Bitcoin and Ethereum will attract more commercial investment in 2023, says Coinbase
CriptoFácil – Business investors will be more attracted to and in 2023 based on the maturity of their ecosystems. In addition, the liquidity of the two major cryptocurrencies in the market will be responsible for attracting these institutional investors. This is one of the conclusions of the Cryptocurrency Market Outlook 2023 report, published by Coinbase (BVMF:) (NASDAQ:).
According to the report, many risky assets will remain attractive in the coming year, even after the bear market.
“Cryptocurrency investment theses are like and haven’t fundamentally changed despite everything that happened in 2022,” the document reads.
The authors consider it unlikely that major cryptocurrencies will reduce their high correlations with traditional assets in 2023.
The report shows that the correlation ratios of Bitcoin and Ethereum with gold are 0.12 and 0.13, respectively. But these correlations rise to 0.58 and 0.57, respectively, in the case of the S&P 500.
Moreover, the report also highlights that the percentage of bitcoin supply in the hands of long-term savers is 85%. According to this data, the total number of holders of this chip is 16.3 million bitcoins.
Cryptocurrency market in 2023
Another aspect highlighted by the study refers to the liquidity crises that occurred in 2022. “We believe that investors’ willingness to accumulate altcoins was severely affected by deleveraging in 2022 and it may take several months to fully recover.”
Also according to the report, institutional investors should help capitalize on the value of Bitcoin and Ethereum, but not other cryptocurrencies. However, the rally in the top two cryptocurrencies should bring retail back to altcoins, as it did in the previous bull cycle.
As for the projects affected by the fall of FTX, the report stated that they must wait for the completion of the procedures envisaged in the bankruptcy process to recover their assets.
“This means that they may not have access to a large part of their treasury resources for years, which will have significant implications for developer retention and application development in the future.”
Finally, the report also notes that stablecoins represent one of the biggest opportunities in the cryptocurrency ecosystem. That’s because they play a critical role “in allowing market participants to price assets in a common currency and to hold funds on-chain during periods of high market volatility.”