This year, the broader crypto market suffered significant losses and fallouts.
Experts from all over the world are calling for strict crypto regulations to govern the industry.
The crypto community as a whole believes that the same thing will happen next year.
Cryptocurrencies such as Bitcoin, Ethereum, and Polygon have experienced sharp drops several times this year, making 2022 the worst year for cryptocurrencies. As a result of the liquidity crisis, a significant cryptocurrency exchange known as FTX also closed down this year.
Authorities in India have also searched cryptocurrency exchanges. Experts predict that the cryptocurrency market will continue to decline in 2023 due to systemic issues in the cryptocurrency industry.
In 2022, all cryptocurrencies experienced significant volatility, with a 70-80% swing between their peak and lowest prices over the course of the year. Bitcoin, the largest private cryptocurrency, has lost approximately 65% of its value in the current fiscal year, falling to $16,822 on December 24, 2022, from approximately $47,600 at the start of the year (January 1).
Similar to Bitcoin, Ethereum had also dropped by around 68.15 percent year to date, falling from $3,834 on January 1, 2022, to $1,218.5 on December 25.
The governor of the Reserve Bank of India has issued a warning about unregulated cryptocurrency!
On Wednesday, Reserve Bank Governor Shaktikanta Das pushed for the prohibition of speculative instruments such as Bitcoin, claiming that allowing such speculative instruments to develop could lead to the next financial disaster.
Several businesses have offered exorbitant interest rates to investors in exchange for storing their cryptocurrency with them. These businesses frequently relied on users' cryptocurrency being loaned to others at exorbitant interest rates and then sharing the profits with users. However, many of these businesses failed earlier this year as cryptocurrency prices dropped and liquidity dried up.
As a result, 2023 appears to be a difficult year for cryptocurrencies. However, this remains to be seen.