In the cryptocurrency ecosystem (using excerpts from www.computerlanguage.com), "Cryptoverse is the blockchain-based universe, which includes digital currencies, smart contracts, crypto exchanges, and all the ancillary services created to deal with them."
Today's piece is looking to enlighten all cryptophiles (including investors and enthusiasts) about a few cryptoverse secrets that could open the prosperity lid for them this year.
It is no longer news that cryptocurrencies failed to nail things last year.
However, as of January 1, the overall global crypto market cap climbed by 5% reaching $871 billion, giving a little glimmer of hope.
When we consider last year's stats for the same time, it's still down over 57%.
Specifically, since the dawn of 2023, Bitcoin has gone up to 4.3% without exiting the range of $16,500 to $17,300.
Vetle Lunde, the senior analyst at Arcane Research, had this to say about crypto trends so far: "It will be a year for the patient, as we do not anticipate prices nearing former all-time highs in 2023."
By December last year, the cryptocurrency had slumped to about 48% (i.e., a $544 billion figure, compared to the previous month), the lowest level so far since December 2019.
This translates to muted cryptocurrency spot trading volumes against the backdrop of CryptoCompare data.
Typically, lower trading volumes are familiar trends around year ends and may not be used to measure current global cryptocurrency status.
Nevertheless, crypto market apathy is a reflection of once-active but disinterested retail investors, who have 'quit' the scene temporarily, going by Arcane Research.
A few optimist market players are already shoving the Bitcoin setbacks of last year into a corner.
According to one of them, Callie Cox, an eToro investment platform analyst, "I feel encouraged by the floor we've seen forming under bitcoin, it shows there's a lot of demand around $16,000 and $17,000 levels."
Moreover, there have been positive signals regarding additional funding rates for perpetual bitcoin futures since December 19 last year, based on stats from Coinglass.
This means that traders are already betting on rising prices and will likely pay as well to keep their long positions open.
It is noteworthy that cryptocurrencies are usually at the mercy of macroeconomic forces.
This is the reason a dwindling global economy portends trouble.
According to GlobalBlock's Sotiriou, "The weaker economic outlook means people have less disposable income to invest in what they deem as risky assets like crypto."
Curiously, by the rule of thumb, the U.S. dollar has been equated as inversely proportional to bitcoin.
What this means is that any economic uncertainty tipping in favour of a rising dollar rate could be enough reasons for investors to run away from Bitcoin while seeking shelter in the U.S. dollar.
This view was communicated by Dalvir Mandara, a quantitative researcher at MacroHive.
A few sensitizers have been raised above for the purpose of catalyzing the investment instincts of crypto investors.
This is expected, going by last year's poor showing of cryptocurrencies that left several crypto investors disappointed.
However, additional morale boosters based on artificial intelligence forecasting tools are recommended.