The Crypto Market Faces Another Tough Year

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PETALING JAYA: Analysts and pundits predict another tough year for cryptocurrency in 2023 due to the overall economic environment as well as specific cryptocurrency scandals imploding in the industry, such as the recent collapse of Sam Bankman -Frieds FTX.

Luno Malaysia Country Manager Aaron Tang said the overall market situation was under pressure given the global macroeconomic environment and specific events within the crypto industry.

We believe in the future potential of crypto, but we are also far-sighted and sensitive to investment risks, he told SunBiz.

The corporate emphasis now is to stay firm on the education-first approach and focus on equipping investors with knowledge and information.

We believe that 2023 will see the crypto landscape continue to mature and grow in terms of scale, usefulness, and acceptance, as crypto has long-term potential despite price swings, he said. he declares.

Based on data from coinmarketcap.com, the aggregate value of over 22,000 digital currencies has risen from nearly US$3 trillion (RM13 trillion) in November 2021 to US$798.7 billion as of January 2, a decline of 92.5% in just one year.

PayPal and Meta alum along with Bitcoin Lightspark Company CEO and Founder David Marcus in a blog post published on December 30, 2022 predicted that the crypto winter will last well into 2023 and possibly 2024.

It will take a few years for the market to recover from the abuses of unscrupulous players and for responsible regulation to take hold. Consumer confidence will also take a few years to rebuild, but ultimately I think it will prove to be a beneficial reset for legitimate industry players in the long run.

The years of creating a token from scratch and making millions are over. The music stopped. We returned to our regular programming of creating real value and solving real-world problems, he said.

Tradeview Capital CEO Ng Zhu Hann has warned that there is nothing stopping digital assets from going to zero in the event of an implosion and that defaults in the cryptocurrency industry continue.

As long as the interest rate remains at a high level with attractive risk-free returns, it is difficult for funds to flow into the cryptocurrency industry, unlike when speculative money was readily available. for speculation over the past two years, he said.

However, he is optimistic that blockchain technology holds promise as its development continues in the coming years.

Meanwhile, Chik Mun Leong, Crypto Enthusiast and Luno Certified Educator, said the outlook for cryptocurrency in 2023 will remain weak due to the global economic outlook and slow development of mass cryptocurrency adoption. .

However, this will improve quickly as we can see that many global banks and institutions are beginning to adopt cryptocurrency in various public services, he concluded.

Additionally, Chik is bullish as he believes the cryptocurrency is now near bottom, which presents opportunities for those looking to invest in digital assets.

My lowest target is between US$12,000 and US$13,000 (bitcoin) by the end of 2023 and will recover in years, he said.

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