If you have been following Crypto, see what 2023 holds for Crypto
A number of times this year, Cryptocurrencies like Bitcoin, Ethereum, and Polygon saw sharp drops, making 2022 the worst year for cryptocurrencies. A significant cryptocurrency exchange by the name of FTX also closed down this year as a result of the liquidity issue. Authorities have also searched cryptocurrency exchanges in India. Experts predict that systemic issues in the cryptocurrency business will cause the decrease in cryptocurrencies to continue in 2023.
All cryptocurrencies saw considerable volatility in 2022, with a 70–80% swing between their peak and lowest prices over the course of the year. Major private cryptocurrency Bitcoin has experienced a tremendous loss of around 65% in the current financial year, falling to $16,833 on December 23, 2022, from roughly $47,600 at the start of the year (January 1).
Similar to Bitcoin, Ethereum too had a year-to-date decline of around 68.15 percent, falling from $3,834 on January 1, 2022 to $1,221 on December 23.
The RBI governor has issued a warning about unregulated cryptocurrency!
Reserve Bank Governor Shaktikanta Das pushed for the outlawing of instruments like Bitcoin on Wednesday, saying that if such speculative instruments are allowed to develop, they might be the cause of the next financial disaster.
Numerous businesses have offered investors exorbitant interest rates in exchange for storing their cryptocurrency with them. These businesses frequently relied on lending users’ cryptocurrency to others at exorbitant interest rates and then sharing the profits with users. But many of these businesses failed earlier this year as cryptocurrency prices fell and liquidity disappeared.
Thus, 2023 appears to be a challenging year for cryptocurrencies. But that remains to be seen.