PETALING JAYA Analysts have predicted a difficult year for the crypto market in 2023. Factors contributing to this are the general economic climate and the emergence of multiple scandals within the industry. Luno Malaysia Country Manager Aaron Tang noted that the market is currently under pressure due to external and internal issues. “We are cognizant and sensitive to potential investment risks, while still believing in the long-term potential of cryptocurrencies,” he told SunBiz. The company’s focus is on providing education and information to investors. “In 2023, we expect the cryptocurrency landscape to continue to expand and mature in terms of scale, utility and adoption, despite the volatility of the asset prices,” he added. Data from coinmarketcap.com shows that the combined value of all digital currencies has declined from US$3 Trillion (RM13 Trillion) in November 2021 to US$798.7 trillion as of January 2, a decrease of 92.5% in just over one year. PayPal Founder and CEO David Marcus, who is also an alumnus of Bitcoin Firm Lightspark, wrote in a blog post on Dec. 30, 2022 that the crypto-winter could last until 2023 or even 2024. “It will require a few years for the market to recover from the abuse of unscrupulous players, and for the establishment of responsible regulations. It will also take a few years for investors to regain confidence, but ultimately I believe this reset will be beneficial for legitimate players in the long run.” Tradeview Capital CEO Ng Zhu Hann commented that digital assets could be wiped out if the sector continues to default. “As long as the interest rate remains high with attractive risk-free rate returns, it is difficult for funds to flow into the cryptocurrency sector, unlike when hot money was readily available for speculation in the last two years,” he said. However, he is confident that blockchain technology has great potential as it develops in the future. Luno Certified Educator Chik Mun Leong believes that the global economic outlook, slow adoption of crypto-assets by the masses, and weak cryptocurrency prospects in 2023 are reasons why cryptocurrency prospects are not looking positive. “However, this may soon change as we can see more banks and institutions adopting cryptocurrencies in various public services,” he added. Chik remains optimistic, believing that the cryptocurrency market has reached its lowest point. This he sees as an opportunity for those keen to invest in digital assets. “My ultimate target is for Bitcoin to reach $12,000 to $13,000 by the end of 2023, and it will recover over the years,” he concluded.
Crypto Industry Stands on Shaky Ground – theSundaily
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