We will likely continue to experience a decline in consumer spending for at least another year. The entire eurozone and the US is heading into a full-on recession. Sweden’s recession will last until 2025 according to the Swedish Ministry of Finance. Bitcoin is down by at least 70 percent since 2021 and altcoins about 90 percent. The crazy thing is that it may seem like the bottom but it’s probably not. Doom and gloom.
Should we just cancel 2023?
Yes, let’s just stay home and cook pasta and enjoy a juicy steak… or serve a bowl of beans. Eat whatever. The wine will probably be more important anyway…
Seriously, what can we say about crypto in a significant period of economic downturn?
Unfortunately, crypto hasn’t been around long enough for us to get an idea on how it behaves in a recession. So, it’s anyone’s guess.
Normally, cash is king in a recession.
When we look back to previous crypto downturns in 2015 and 2018, we learn that they where brilliant investment opportunities. Especially for those who held their digital assets for 2-3 years. It’s important that you consider your own financial circumstances and follow your own belief in investing. However, I am guessing and working under the notion that the next considerable up-trend in crypto prices will be in the end of 2023 or in the beginning of 2024. But I am also expecting the unexpected.
Who will be the winner in 2023?
The patient investor is destined to be the winner.
I know it sounds boring. But since you are staying up to date you are doing things differently than most people. The crypto industry is eventful, fast, and keeping pace is key to be successful. Remember, the public is still ignorant about crypto and always too late to the party.
I suggest beginning the year by appreciating what we already have instead of cancelling 2023 by sticking our head in the sand because it may not be a year with financial growth, Now, it’s time to be curious, study and learn. Expect the unexpected. Afterall, growth is not only in numbers.