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Will Crypto Winter End in 2023?

With the Fed’s record rate hikes in 2022, crypto assets quickly entered a downward trend. This decline was followed by bankruptcies and fraudulent activity by some of the major crypto exchanges and companies, including FTX, and the cryptocurrency markets disappointed their investors all year.

James Royal, from New York-based financial services company Bankrate, asked experts how this collapse process, called the ‘Crypto Winter’, will follow next year. In general, experts seem to take an extremely dark view of digital currencies. Marilyn Cohen, CEO of Envision Capital, said:

“Injured investors deserved it,” Cohen says. “They swallowed the crypto pill and believed it was a store of value. Whereas, cryptocurrencies were created out of nothing and have no value.”

“The collapse in cryptocurrencies shows people what they are all about: Big nothing,” said Kim Forrest, Chief Investment Officer and Founder of Bokeh Capital Partners. Miller and Washington CEO Michael Farr has simply echoed many of these sentiments. Farr commented:

“Cryptocurrencies, which lack any intrinsic value or fiat currency, relies on the next buyer’s willingness to pay to determine value. As sentiment turns negative, prices drop as well. I believe crypto values will rebound when sentiment changes. These are highly speculative investments.”

Dec Mullarkey, Managing Director of SLC Management, points out that the problem with cryptoassets has no spillover effect on other traditional financial markets. Mullarkey speaks:

“Fortunately, the problem with crypto tends to stay in crypto,” Mullarkey says. “But the risk is that continued high stress is forcing traditional assets to liquidate to cover losses that increase volatility in other markets. For now, there seems to be little chain reaction to the broader markets. looks.”

Charles Lieberman, Chief Investment Officer at Advisors Capital Management, also described this year’s crash as a “big blow to crypto”“Speculators will continue to speculate, but cryptocurrencies are still far from being a mainstream asset,” Lieberman said. So the risks remain high.”

Sameer Samana from Wells Fargo stands out as the only investor with a positive outlook on the cryptocurrency markets.

“We think cryptocurrency technology is promising and for stronger participants, such as internet companies of the late 90s and early 2000s, the concussion will be positive in the long run.”

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