FTX Crash Effect May Rally Into 2023, Crypto Data Provider Predicts
The virtual asset data Provider Cryptocompare predicts that this FTX crash has a higher possibility of rallying into 2023. This is however taken in good faith as it would be a step to weed off the short term investors from the long term investors.
Bull Or Bear Run In 2023?
With big crashes reported at Terra Luna, Three Arrows Capital, and the FTX exchange, 2022 has been noted as one of the most difficult years in the cryptocurrency space.
When it appears as though the crypto space has just experienced one hazardous effect and is attempting to regain its footing, another crash occurs, tearing it down and returning it to ground zero.
CryptoCompare believes it will take a longer time for the crypto space to regain its lost vigor. It was noted that the recovery may be delayed due to the ties FTX had with many firms and key players in the crypto space, which are and will continue to influence their activities.
As a result of some exchanges’ dealings with FTX, they were also subjected to liquidation, and were out of business in no time; These are factors that would stall any form of speedy recovery.
This has, however, highlighted a number of key points that were previously overlooked, one of which is the need for developers to build sustainable and stress-proof projects with good and unique utilities.
Positive Expectations For 2023 In The Crypto Space
With this in mind, Cryptocompare believes that 2023 will be a better and more stable year with a lot of clarity.
Instead of quick cash grab projects, there would be a more targeted focus on durability, uniqueness, and stability.
“This would separate the short-term investors from the long-term investors, properly setting the stage for the bull run,” Cryprocompare predicted.
The next new development in the space would be the implementation of clear and effective crypto regulations, which would establish frameworks and guidelines to guide the activities of investors and firms in this expanding space.
Some regulators have implemented strict regulations on their entities already, while others are still in the works and on hold.
Cryptocompare, on the other hand, believes that these regulations would be more effective if distinct and separate rules were applied to both decentralized and centralized exchanges, as they are opposed entities, with the majority of crashes occurring on centralized exchanges.
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