Huobi Research believed that Bitcoin& Ethereum had already reached its bottom

With Bitcoin recording a high in 2021, the crypto community has been expecting BTC to surpass $69,000. However, in a completely new development, the short-term bulls have decided to unify the market in the wake of the collapse of several crypto businesses.

Will Bitcoin Bottom in 2023?

Throughout the years, the Bitcoin price has dropped from a high of $47,200 in early 2022 to as low as $15,599. While some believe that the king coin has bottomed, others are betting heavily on $13,000.

huobi-research-believed-that-bitcoin-ethereum-had-already-reached-its-bottom

Source: CoinMarketCap

Standard Chartered even raised the possibility that Bitcoin will drop to as low as $5,000 by 2023. Cryptocurrency exchange Huobi also concurs that BTC will bottom.

In a recent report, Huobi emphasized that considering the current market state, cryptocurrency is already at a “cyclical bottom.” A more detailed report on the prices of Bitcoin and Ethereum states: “Major crypto assets, such as BTC and ETH, have become the main asset class in long-term portfolios. BTC price could bottom at $15,000 and $1000 for ETH during this bear market cycle, and it could consolidate until Q1 2023, after which there should be a nice rally.”

Even so, Huobi believes the bear market will last.

There is little chance that the market will decline unless there are more severe systemic risks, such as fluctuations in meeting regulations. Additionally, leverage on centralized institutions and on-chain Defi protocols has decreased. Existing users are influenced by macroeconomics.

In terms of macro, US CPI was significantly affected after four consecutive interest rate hikes to 75 basis points. Furthermore, interest rate hikes are expected to be lower starting in December. However, this will stop around March 2023. The rate of increase is slowing down, the most difficult period of the cycle. This period is over, and the bottom of monetary policy is almost ready to form.

Regarding cryptocurrencies, Huobi stated the following: “…we believe that the blind and opportunistic sentiments in the market have been put off by the extent and duration of the market downturn; the FTX crash could be the last bullet that problematic organizations and projects will be wiped off the market.”

Furthermore, Huobi believes that a bottom will be formed in the first quarter of 2023. In addition, it seems that social moguls in Web2, such as Twitter, will continue to pursue Web3, introducing new paradigm of SocialFi. At the same time, the flourishing of layer two projects will take place in 2023.

Accordingly, the ZK network will begin to launch; Dapp will usher in a period of rapid growth, create actual demand for on-chain storage, and open up the storage segment with the most significant and natural growth.

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