Cryptocurrency traders are having a difficult time as 2022 draws to a close. Things became worse when Sam Bankman-Fried, the exchange’s creator and once-the-golden-boy of cryptocurrencies, was arrested and the exchange FTX collapsed. Bankman-Fried allegedly “orchestrated a years-long scam” to hide from FTX investors the divergence of customer funds to his cryptocurrency trading hedge fund, according to the Securities and Exchange Commission.

What's the Future of Cryptocurrency in 2023? — What’s the Future of Cryptocurrency in 2023?

In 2022, cryptocurrency prices fell by more than 60% due to global frauds and uncertain legal conditions.
In November, FTX, a significant cryptocurrency exchange, and FTX.US, FTX’s American subsidiary, filed for bankruptcy. After being detained on December 12 in the Bahamas, Bankman-Fried will be returned to the United States.
According to reports, Bankman-Fried may have fraudulently obtained $10 billion in funds from FTX customers for his trading company, Alameda Research.
FTX’s repercussions could affect other crypto companies and give rise to a variety of legal and criminal investigation possibilities.
Following FTX’s bankruptcy and Bankman-arrest, Fried’s many cryptocurrency platforms are experiencing significant outflows.
As a result of falling Bitcoin prices and rising energy expenditures, miners are defaulting on equipment-backed loans.

Despite these bleak trends, some financial giants believe cryptocurrency will be the next generation of markets. “I believe the next generation for markets, the next generation for securities, will be tokenization of securities,” stated Larry Fink, CEO of BlackRock.

The future of purported cryptocurrencies is uncertain as market volatility rises and investors keep selling out risky investments.

Cryptocurrencies saw a correction in the first month of 2022 following the bull run of 2021, with Bitcoin (BTC) and Ether (ETH) falling by about 20% and 31%, respectively. Bitcoin is currently trading about $17,000, down more than 60% from the start of 2022, as cryptocurrency values have plummeted.

Though it was the first gain since July, there was a little improvement in October compared to September, with a rise of roughly 1.76 percent, though it was still below the peak in March.

In a paper, Standard Chartered Bank predicted that Bitcoin’s price might fall to $5,000 next year. “Yields fall along with technology stock prices, and even as the Bitcoin sell-off slows down, harm has already been done. More and more cryptocurrency businesses and exchanges are struggling with a lack of liquidity, which has caused more bankruptcies and a decline in investor trust in digital assets “In the note, Standard Chartered Bank’s global head of research Eric Robertsen made a statement.

Since Bitcoin has the greatest market valuation among cryptocurrencies, it serves as a leading indicator for the industry as a whole. Equities and currencies are impacted by concern of a worldwide recession. Because of this, several experts believe that cryptocurrencies will likely experience some comeback in 2023 despite severe trade volatility.