• Jacquelyn Melinek, a senior crypto reporter from TechCrunch, talked to CNBC Market Alert about what lies ahead for the crypto market in 2023.
• Retail investors will likely sit out of the crypto market in 2023, however VC funds and big businesses like Starbucks will continue to be investors in the crypto space.
• Trust needs to be rebuilt in order for the crypto ecosystem to regain its ‘mojo’, and regulators need to step in and create a framework instead of using traditional techniques.
The crypto market has had a tumultuous ride in 2022, leaving investors and other stakeholders in the sector feeling uncertain. Jacquelyn Melinek, a senior crypto reporter from TechCrunch, recently spoke to CNBC Market Alert about what lies ahead for the crypto market in 2023.
Melinek believes that there is a high chance that retail investors will sit out of the crypto market in 2023, especially those that have been interested in the past but have seen many industry changing events like Terra’s collapse. However, she states that the true believers are those who are building the space and will continue to remain in 2023.
When it comes to who will be the main investors in crypto in 2023, Melinek believes that VC funds won’t stop investing just because of what happened with FTX. In fact, she believes that big brand businesses like Starbucks are getting into the space, and we will continue to see banks getting into the space in 2022.
Finally, Melinek states that for the crypto ecosystem to ‘get its mojo’ back, trust needs to be rebuilt 100%. She believes that regulators need to step in and create a framework instead of using old-school techniques that we see with traditional markets.
It remains to be seen how the crypto market will fare in 2023, but it is clear that trust needs to be rebuilt and that regulators must step in in order for the crypto ecosystem to have a successful future. Until then, investors and stakeholders will have to wait and see how the crypto market develops in the coming year.