Future of the Crypto Market in 2023

[ad_1]

In the new year, it is widely expected that the consequences of FTX’s bankruptcy will trickle down to other companies over time.

Dear readers, welcome to another installment of our widely read Coinspeaker Advent Calendar. Many investors think 2022 is arguably the most tumultuous year, and they might be right to think so. But what will 2023 bring to the crypto market?

Mad Year of Crypto

When China banned cryptocurrencies in mid-2021, the move was seen as troubling for the broader digital currency ecosystem. While the industry recorded bearish sentiment following regulation, the broader market rebounded from the lows created by regulation when Bitcoin (BTC) surged above $68,000 in November last year.

This year has gained new momentum with the pressure the global economy has come under with the advent of war in Ukraine. While this war has already impacted the industry, the unpecking of the algorithmic stablecoin, TerraUSD (UST), and the outright collapse of Terra (LUNA) have deepened the crypto winter that has fueled the collapse and bankruptcies. many crypto unicorns.

Some of the companies that went bankrupt in this first wave of crypto winter include Celsius Network, Voyager Digital, Three Arrows Capital (3AC), Zipmex, and Vauld Group, among others. With the series of implosions at the time, many lost faith in the industry, but relying on the resilience of technology and the presence of High Income Individuals (HNIs) or corporate investors in the space helped hold the fort together.

Although there was no observable super growth in the industry this year, there was plenty of evidence to show that the industry had recovered from the crypto winter lows as recorded in the second quarter. Then came the FTX saga which saw the second largest digital currency exchange file for bankruptcy.

The FTX implosion can best be labeled as the straw that broke the camel’s back and eroded the appreciation of many cryptos including BTC and Ethereum (ETH) this quarter.

The fate of crypto on the way to 2023

Many people believe that the digital currency ecosystem may continually experience liquidity upheavals until it reaches the coveted maturity. In the new year, it is widely expected that the consequences of FTX’s bankruptcy will trickle down to other companies over time.

Whether or not there is direct exposure to FTX, investors’ caution and conservative approach may still extend the crypto winter into the first quarter of 2023.

Along with the industry’s outlook for trade, other trends are expected to take center stage next year. We are bound to see more crypto payment integrations from global e-commerce companies as we have seen this year. While many brands have ventured into the Web3.0 and metaverse scene with the launch of their own non-fungible token (NFT) collections, the year 2023 is bound to be defined and characterized by the advancement of Play-2- Earn (P2E). , active metaverse apps and other related innovations are bound to take center stage.

Based on the events of this year, we are bound to see more defined regulatory measures put in place by authorities around the world. In total, venture capital funding will not seize, however, it will be limited only to startups with proven fundamentals to remain sustainable over time.

work it

Benjamin Godfrey is a blockchain enthusiast and journalist who loves to write about real-world applications of blockchain technology and innovations to drive mainstream acceptance and global uptake of emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain-based media and sites. Benjamin Godfrey is a sports and agriculture enthusiast.

Thank you!

You have successfully joined our subscriber list.

[ad_2]