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Unlocking the Future: The Top Three Trends Driving the Crypto Market in 2023
2022 set the stage for what we should expect of the crypto market in 2023. The global financial market, including the crypto market, went through hell last year, and it all began with federal governments raising interest rates as a way to slow economic depression and reduce inflation.
Before 2022, interest rates were low, and this fed investors' appetite for risks, encouraging them to comfortably invest in the volatile cryptocurrency market. The crypto market had a ball at the beginning of 2022 with BTC and ETH reaching respective all-time highs, and the entire crypto market growing to $3 trillion.
But, after federal governments changed course and increased interest rates, investors' appetite for risks fell, and they needed to hold to low-risk investments. Being a volatile market, the crypto ecosystem saw investors reduce the number of crypto assets they have and by the end of the second quarter of 2022, the market has lost $1 trillion.
This, in addition to the de-pegging of the UST stablecoin from the US dollar, which saw investors lose billions in the blow-up that followed, and the Alameda and FTX debacle of late 2022, saw investors continue their exodus from the crypto market. But the time the year was up, the crypto market had lost 60%.
