People in developed economies will see Bitcoin as a long-term store of value and a hedge against M2 inflation, rather than obvious CPI inflation. We see India as a potential leader in crypto regulation, since the Finance Ministry has been vociferous about the need for international collaboration in this area. With India at the head of the G20, there have already been various conversations concerning the extent of industry recognition and regulation. Only until there are controls for centralized crypto players, which are prone to exploitation by those in charge, will the ecosystem’s full potential be achieved.
Remittances and non-dollar alternatives are accorded higher weight in developing countries. If our recession forecasts come true, the Federal Reserve will postpone increasing interest rates since inflation would likely fall and the government will continue to create money and run budget deficits. Under the above-mentioned scenario, if there were no bad cryptocurrency-related news, the price of Bitcoin might climb a worrying wall back to $25,000.
The majority of Federal Reserve members expect the benchmark interest rate to exceed 5% by 2023, as the US central bank battles persistently high inflation. Following a break in rates at that level, rate reduction are likely to commence in 2024. This trend fits the longer-term narrative and is higher than the September 2023 median forecast of 4.6%. Long-term and median predictions for 2022, however, remained unchanged at 2.5% and 4.4%, respectively.
The industry is also fighting for more innovation and the use of decentralized infrastructure in order to provide more transparent and secure trading techniques and digital asset administration. With all of this and more on the horizon, the next year looks good for crypto aficionados who have maintained their confidence as well as skeptics who continue to doubt their validity.