Crypto market makes a comeback in 2nd half of 2023 after huge drop- The New Indian Express
Express News Service
BENGALURU: Even as the crypto market came under significant pressure in the first half of 2023 due to the after effects of Terra and Luna collapse, mismanagement of funds in FTX and so on, virtual currencies witnessed a recovery towards the end of the year.
Exchanges believe with regulatory clarity 2024 will hold significant promise for the crypto market. Bitcoin, the most popular crypto, rose from $16,000 to its peak above $44,500 this month. “Factors such as enhanced regulatory clarity and growing acceptance among institutional and retail investors attributed to the surge,” said Edul Patel, CEO, Mudrex, adding 2023 witnessed a recovery phase for the crypto market.
In October, G20 nations adopted the road map proposed in the Synthesis Paper for crypto assets regulation. Earlier, a Synthesis Paper was released by the International Monetary Fund (IMF) and the Financial Stability Board (FSB) that discussed various challenges associated with crypto. It said blanket bans that make all crypto-asset activities illegal can be costly and technically demanding to enforce. It also said that a decision to ban is not an “easy option”.
According to Kumar Gaurav, founder and CEO, Cashaa, Bitcoin prices could end at a gain of around 120% for the year 2023. “Looking forward to 2024, with increased regulatory clarity and regulated avenues of crypto investing provided by Bitcoin and Ethereum ETFs can usher in a new era of institutional as well as retail investments. This could be further spurred on by the expected end to rate hike cycle and consequent rate cuts by the Federal Bank in the US and other central banks,” he said.
He added that crypto could become a preferred alternative investment avenue to earn inflation beating yields for investors and 2024 will also witness the next halving of Bitcoin rewards increasing scarcity and hence boosting the price of Bitcoin and consequently of other alt coins. About 6 lakh new users were signed up on WazirX this year and women accounted for 22% of all tokens traded on the platform.
Rajagopal Menon, Vice President, WazirX, said, “With the advent of decentralised systems and maturing blockchain technologies, cryptocurrencies are set to evolve beyond speculative assets, becoming integrated within supply chain management, healthcare, and digital identity verification.”
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