It sure has been a while since we touched on cryptocurrencies here on Seedly and I am sure many of you have been out of the loop for a while too.
But for those who have a keen eye on cryptocurrencies, the price of Bitcoin has surged along with other major cryptocurrencies, including Ethereum and XRP. Since the start of the year till now, Bitcoin has in fact more than doubled in price!
What has happened in the cryptocurrency world in 2023 so far? Here’s all you need to know to catch you up to speed in the world of crypto and the general outlook of the crypto space!
Disclaimer: The information provided by Seedly serves as an educational piece and is not intended to be personalised investment advice. Seedly does not recommend that any cryptocurrency should be bought, sold, or held by you. Readers should always do their own due diligence and consider their financial goals before investing in any investment product.
TL;DR: How Are Cryptocurrencies Doing In 2023?
- Bitcoin And Other Cryptocurrencies Price Surges
- General Outlook on The Crypto Space
- How Do Singaporeans Perceive Cryptocurrency in 2023?
Bitcoin And Other Cryptocurrencies Price Surges
As mentioned above, Bitcoin has more than doubled from US$16,602 to about US$34,920 at the time of writing. Meanwhile, Ethereum has increased from US$1,196 to US$1,895 and XRP has increased from US$0.344 to US$0.69.
The surge in crypto prices can be largely attributed to one of two factors.
Remember when there was a series of bank collapses? Yep. I’m talking about Silicon Valley Bank and the following aftermath triggered by its collapse. It even led to a huge liquidity problem for world-renowned bank Credit Suisse, which had to be saved by UBS via an acquisition.
In a Singaporean context, we too have had our fair share of banking disruptions. While they aren’t as scary as a bank run or collapse, it is natural that you won’t trust the bank as much with your money. The same goes for people globally. Thus, with the erosion of trust in banks, some investors have turned to cryptocurrency to diversify their assets.
The second factor is that faith in the U.S. dollar has been withering. Cryptocurrency isn’t the only indicator here as other assets such as gold are surging while the USD reserve currency held by other countries is at its lowest level in decades, according to economist Stephen Jen.
General Outlook on The Crypto Space
According to Forbes, we are on the brink of a crypto price boom due to the fear of “global wartime inflation“, a term coined by Arthur Hayes who is well-known for his predictions of how global economics will play out.
Unless you’ve been living under a rock, you would have heard of major wars such as the Russia-Ukraine war (which is still ongoing) and the more recent, Israel-Hamas war. With inflation already being high, these wars have only worsened the problem.
With the U.S. backing both Israel and Ukraine, this “global wartime inflation” is believed to cause a spike in crypto prices with a chance of Bitcoin hitting US$1 million.
According to Hayes, “If long-term US Treasury bonds offer no safety for investors, then their money will seek out alternatives. Gold, and most importantly, Bitcoin, will begin rising on true fears of global wartime inflation.”
The writing is already on the wall; Following U.S. President Joe Biden’s address to the nation on the Ukraine and Israel wars, BTC/USD went up by 15%.
“This isn’t speculation as to an ETF being approved — this is Bitcoin discounting a future, very inflationary global world war situation” Hayes continues.
How Do Singaporeans Perceive Cryptocurrency in 2023?
Outlooks aside, how do Singaporeans perceive cryptocurrency in 2023?
Based on a survey by YouGov back in May, it was found that a quarter of Singaporeans believe that cryptocurrency is the future of finance. Interestingly, 32% of the 2,000 adults surveyed in Singapore have either owned or used to own crypto. Meanwhile, more than half of those who own crypto expect to trade or hold this year.
This shows that despite advertising restrictions by MAS on crypto firms, the interest in cryptocurrency among Singaporeans is still surprisingly high.
But more importantly, what do you think of cryptocurrencies today?
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Disclaimer: This study is conducted in collaboration with Coinbase for the purposes of market research and is not intended to be personalised investment advice. Seedly does not recommend that any cryptocurrency should be bought, sold, or held by you. You should always do your due diligence and consider your financial goals before investing in any investment product and consider consulting a qualified financial advisor before making any investment decisions.
Cryptocurrency in Singapore 2023 and the Future
All in all, 2023 has seen the resurgence of cryptocurrency and the outlook for it does look pretty positive. That said, remember that cryptocurrency is, after all, a speculative asset that carries a very high risk if you choose to invest in it.
Always remember to do your own due diligence before investing!