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If you are just starting in the cryptocurrency exchange or trading deal, you probably want to look into the future to see if your investment will bring real returns. However, most cryptocurrency price predictions are speculation rather than full-fledged research.

Check how well you know the accuracy and credibility of the sources from which you get your information and build entire strategies on crypto investing. The more you know, the more likely you exchange cryptocurrency in a safe way.

Reasons for fail

The accuracy of crypto price predictions remains a subject of debate and skepticism. While some individuals and experts have successfully predicted price movements in the past, it is important to approach these predictions with caution.

Bloggers, Influencers, YouTubers, authors on Reddit or Facebook, anyone can write a prediction for future prices. But these people are not always professionals in the cryptocurrency world. Not all of them use analysis tools. Beware of unsubstantiated claims. They can cost you big money.

Many forecasts simply repeat what might happen if current trends continue to develop. It is not certain at all that this will work. Unfortunately, it is not always the case that if a coin rose 20% last year, it will rise 20% again next year.

The cryptocurrency market is one of the most unpredictable of all financial markets. It often depends on unexpected news and events. Central banks or governments do not regulate the cryptocurrency market. The volatile nature of the crypto market, coupled with numerous external factors that can influence prices, makes it challenging to predict future price trends accurately and consistently.

Sometimes even experts can’t make accurate predictions. For example, the University of California in Berkeley experimented with the future. About 300 experts, political scientists, economists, historians, and journalists made 82,361 predictions. After comparing the predictions with what happened, the professor at Berkeley University concluded that most experts failed to guess or calculate what would happen.

5% of successful price predictions

A small percentage of successful predictions are not speculations about the future of the crypto market but hypotheses about the development of specific coins or tokens. One way to distinguish the most likely hypotheses from empty predictions is to consider whether there are multiple possible developments in the piece.

Believe only reasoned statements, not clickbait headlines or quotes from unknown “experts.” Don’t be lazy to check the expert’s previous predictions. Which ones have come true in the last 6 months or 1 year?

Algorithm of crypto price analysis

If you enjoy reading cryptocurrency market capitalization forecasts, consider a few key points.

Most experts forecast the coolest and most popular currencies, such as Bitcoin or Ethereum. The main argument in their reports is that there have been sharp price rises in the past. However, even well-established cryptocurrencies have seen dramatic declines after the ups. In addition, a new small project could also be the object of your investment if its developers and initial stage of operation are credible.

Also, note that the same data-calculation algorithms are best suited to measure an area that does not change much. The cryptocurrency market is an ever-changing environment, so experts who study trends must regularly present new ideas in calculations.

Monitor the correlation between price rises and falls. If the big market players price up, the new smaller cryptocurrencies will likely rise.

Can AI generate accurate predictions?

AI is making our life easier. But none of the AI tools in 2023 can generate predictions that have at least a 70% chance of coming true.

You may use some automated tools, for example, to check prices in real-time or get notifications if something changes. But don’t rely on AI.

Nowadays, it keeps developing. Researchers, developers, and investors use AI to develop effective predictive models to analyze historical cryptocurrency market data and make more accurate predictions.

As blockchain technology allows data to be securely stored and exchanged, AI and machine learning can be implemented to analyze and extract information from historical and real-time cryptocurrency data. Many blockchain transactions can also point to behavior patterns to help identify drivers in cryptocurrency markets. So it is very likely that we will be able to rely more confidently on AI research findings in the future.

What you should know about the future of BTC and ETH

As large currencies influence the whole market, we recommend considering a few recent events.

Bitcoin and Ethereum have been in incredible stability. They both have been trading in a positive range since early 2023. This positive trend is also affecting smaller cryptocurrencies.

Moreover, the total trading volume in the cryptocurrency market has been restored to 2021. The global cryptocurrency market has a capitalization of more than $1 trillion. The year 2022 has shaken up the market in a big way. But now the situation is recovering.

In conclusion

Crypto price predictions are based on various factors. However, these factors do not guarantee accurate predictions. The crypto market is still relatively young and highly influenced by sentiment, news events, and regulatory developments, making it inherently unpredictable.

Instead of relying on price predictions, research, understand the fundamentals of the cryptocurrencies you are interested in, and develop a long-term investment strategy.