New Year Crypto Trends
There are stories to watch in the crypto world as we enter 2023. Although it’s the holiday season, it still looks like things are happening in crypto. Here’s what’s likely to be on the agenda in the coming weeks:
Sam Bankman-Fried Will Be Heard
Sam Bankman-Fried, the disgraced former CEO of major crypto exchange FTX, faced court in New York on January 3, following a series of fraud charges surrounding him. Bankman-Fried was arrested in the Bahamas on December 12 and admitted to extradition, arrived in the United States last week and was later released on bail. The regulation has huge implications not only for Bankman-Fried, but for the entire crypto industry.
Bad Weather in Bitcoin
Weather-related issues may continue to affect bitcoin miners in the coming days – all things cryptocurrency enthusiasts should keep in mind as we enter the new year. Last week, heavy rains swept across the United States, bringing extreme heat and power outages to many parts of the country.
In particular, the weather event created a unique challenge for bitcoin miners in the United States. They depend on having reliable electricity to do their work, so any short-term power outages have a negative impact on their ability to engage in mining operations. In addition, extreme cold can cause mechanical damage to the system that can damage its performance. It will be great to watch.
FTX, Binance and Market Stability
The recent collapse of FTX, one of the largest cryptocurrency exchanges, has left many investors worried about the safety of their money. In response, many large exchanges have tried to show proof of deposit to reassure customers that their money is safe.
Even Binance, the world’s largest crypto exchange, has seen recent exits and struggled to rebuild trust, with the company’s CEO promising to “lead by example” by embracing transparency, according to a Reuters report. said. Binance CEO Changpeng Zhao first engaged accounting firm Mazars for the approved approval process.
This is different from traditional financial analysis because it only requires the accountant to perform the analysis process required by the client. Therefore, Mazars and Binance’s work has not instilled the same credibility that a full independent audit could have, especially in terms of exchange fees. This got worse when Mazars withdrew its crypto certification and announced that it will no longer work in the crypto industry. Without adequate research, there is no clear way to verify whether crypto companies have enough assets to cover their debts.
Yet Zhao also questioned the ability of the top accounting firms to properly audit crypto exchanges. In the next few weeks, it will be interesting to see if there is anything new on this front.
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The Fate of the Crypto Market in The New Year
The cryptocurrency market has seen more than its share of drawdowns in 2022. At the end of the year, the major cryptocurrency Bitcoin stood at around $16,900 from its all-time high of more than $69,000. Other cryptocurrencies are struggling to stay afloat amid the market crash and financial crisis faced by many companies operating in the space. Although the crypto market has been dragged by losses this year, many enthusiasts expect that 2023 will bring stability and increased income in the space.
Recently, there has been a decline in trade; understandable given that it is a time of the year when many customers can be well-deserved vacation after a difficult time. Still, it is difficult to predict what will happen quickly and whether the recovery will begin in the first weeks of the new year.
Some analysts say it will take time before we see price stability across the various cryptos and Bitcoin itself. Still, as we enter 2023, there is some optimism among crypto enthusiasts who are hoping for a better performance than the “bear market” experienced in 2022.