M31 Capital bullish on BTC price, adoption in 2023 predictions

Crypto investment firm M31 Capital shared its 2023 predictions and said it expects Bitcoin (BTC) to skyrocket.

The firm said in its 2022 recap report that it expects adoption to increase further.

The document also states that chains and NFTs might evolve in a new direction, and privacy technology might gain importance.

BTC and adoption

Considering BTC’s price performance during the bear market, M31 Capital said it was “incredibly bullish” for the upcoming cycle. The report states that “no one voluntarily sold BTC,” which shows the community’s trust in BTC. The report finalized its words on BTC by quoting Ryan Selkis, who said:

“We’re in a sell-a-kidney-to-buy-more territory.”

The firm acknowledged that crypto adoption continued to increase despite the halting effects of the bear market prices. Claiming that the 2022 winter was a “brief hiccup” like the 2014 and 2018 bear cycles, the report said that the crypto sphere would continue on its “UpOnly adoption trend” in 2023.

Another report from June 2022 predicted a similar trend for crypto and BTC adoption. The study stated that crypto adoption was at its earliest stages and has yet to experience exponential growth. The report predicted that BTC adoption would break the 10% market penetration limit by 2030 and become a mainstream technology.

Chains, NFTs, and Privacy

The report predicted the crypto environment to start evolving towards a cross-chain model while also expecting access NFTs to emerge as one of the year’s hot topics.

The text acknowledged the considerable amount lost to bridge attacks throughout 2022 and claimed it could give users the idea that “Wrapped assets are dead. Long live interoperable native assets.” The text cited THORChain (RUNE) as being the only protocol that tries to contribute to a cross-chain future as the crypto sphere moves away from bridges and wrapped assets.

M31 Capital also acknowledged the success of NFTs and said it expected the hype around art NFTs to continue as it is. However, it also added that 2023 would likely be the year when access NFTs emerge and offer new use cases. It also listed existing use cases like Ethereum Name Service (ENS), Tesla door unlock, and ticketing & in-person events.

Finally, the company also said that it expects regulations to heat the Defi space, pushing permissionless Defi protocols toward alternative privacy solutions. While admitting that privacy has always been a hot topic for the crypto sphere, the report expects the effects of solidifying regulations to create a higher movement for privacy solutions.