Many events in 2022 covered the crypto industry. This has left many investors, regulators and governments wondering if they have seen the worst corporate trap and what will come in 2023. According to PrivacyAffairs, cryptocurrency fraud was reported at US$ 4.3 billion in November 2022.
On December 9, 2022, CoinDesk’s crypto user database estimates that more than 26,000 jobs have been lost in the crypto industry. Many crypto companies have struggled to stay afloat, some have closed and others have filed for bankruptcy.
These include Argo Blockchain, BlockFI, Celsius Network, Compute North, Core Scientific, FTX, Terraform Labs, Arrow Arrows Capital, and Voyager Digital, among others. 2022 has seen many cryptocurrency prices going south. The main cryptocurrency, Bitcoin, started trading at around US$47,000 and ended the year at just under US$17,000. Similarly, Ethereum, the leading altcoin, started the year at around $3,800 and ended the year at around $1,200.
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Global Inflation and Crypto Regulations Impact Cryptocurrency Prices in 2022
Most of the world’s economies have high inflation in 2022. Annual inflation reached a record high of 9.1% in the United States in June 2022. Similarly, consumer price inflation in the euro area reached a record high of 10.6% in October 2022.
The US Fed, the European Central Bank (ECB) and several other central banks raised their key rates in 2022 to curb rising inflation. Cryptocurrency prices fall as markets adjust to higher interest rates. 2022 has seen many global efforts to regulate the crypto industry. The Market Regulation on Crypto-Assets (MiCA) is expected to support crypto-wallet regulation in the EU in early 2023. In the United States (US), several crypto regulatory bills have been drafted and are waiting for Congress to pass them.
One of the main events of 2022 is the integration of the Ethereum network from the proof of work system to the verification system of proof in September. One of the biggest benefits of this upgrade is the expected reduction in the energy consumption of the Ethereum blockchain by more than 99%.
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Ethereum Co-Founder Outlines Network Upgrades for 2023: Surge, Scourge, Verge, Purge, and Splurge
Ethereum co-founder Vitalik Buterin outlines the next steps for Ethereum network upgrades: Surge, Scourge, Verge, Purge, and Splurge. The year 2022 is now behind us. 2023 is coming with optimism and the challenges of 2022 can provide a strong foundation for the future of the crypto industry. Crypto trends should come faster and faster.
The main crypto currency is used in trading volume in the beginning of 2023. The lessons to be learned will have a major impact on how crypto investors and other stakeholders approach 2023 and beyond.