One of South Korea’s biggest cryptocurrency exchanges ‘Bithumb’ recently researched what the market sentiment will be in 2023.
The researchers found that most investors are hopeful for a better 2023 and willing to invest more in digital currencies. This shows that in 2023, the cryptocurrency market will be able to earn customers’ trust.
The Korean exchange is renowned for its market and economic research. A recent study has found that investors rely on three key reasons.
Moreover, Bithumb also did a series of predilections for the upcoming year. Below are the reasons the researchers identified for market trust to return.
The Outlook of Ripple vs SEC Case
The researchers have deeply analyzed the lawsuit that was being filed by the SEC against a renowned crypto exchange known as “Ripple.”
The U.S. has become the hub for Crypto-related activities. The case’s final decision will play a significant role in the prices of digital currencies. If SEC wins the case, the prices of cryptocurrencies will further decline.
But the recent news regarding the ongoing lawsuit heavily favors Ripple.
Some of the world’s leading financial, legal, and crypto experts have said that Ripple is winning the proceedings.
If Ripples wins this case, the prices of all the cryptocurrencies will go long-term bullish.
A win for Ripple will also cement that most of the provisions on SEC do not apply to most digital tokens.
This will ease the extra regulatory and transparency pressure on cryptocurrencies. This means the rise is a surety.
Ripple is winning the case now, and investors are ready to invest big in the market.
Legislation-Related Troubles of Lawmakers in the USA
The researchers noted an important thing, the majority of U.S. lawmakers need to be on the same page regarding the crypto legislation.
As a result, Congress could only pass crypto-related bills on the 3rd of January.
Once this time frame passes, all the current crypto regulations drafts will be rolled out.
This means that regulators have to start from day one again. Things will become more difficult for lawmakers to reach a consensus and make rapid legislation.
It is also important to understand that 2024 is an election year, and chances are high that Republicans once more emerge as the victor. Republicans are less harsh about the crypto regulations.
But as things stand, it is crystal clear that legislators are on different cards regarding crypto legislation.
But despite all the disputes and disagreements, regulators elected members will continue their mission to implement such provisions so that another situation replicating the FTX fallout might never happen again.
Moreover, researchers also concluded that Congress cannot pass the crypto-related bill before the end of FY 2023.
South Korea is heading towards Extreme Crypto Regulations
Compared to the U.S., the situation in South Korea is completely different. The demise of FTX is a game-changing event regarding cryptocurrency regulations.
It has not only had a negative impact in the U.S., but cryptocurrencies across the globe have suffered from such incidents.
Regulations are also coming to South Korea to make crypto-related activities less risky. Currently, two of the crypto-related bills are already on the table.
If this legislation is enforced early in 2023, this will pave the way for many investments in cryptocurrency markets.
Experts on the entire situation have said that if a useful legal framework is implemented in the global cryptocurrency marketplace, the industry can recover in weeks.
Now is the best time to bring investors back. The best way to get investors back is by making cryptocurrency secure.
Moreover, as things stand market is slightly bullish, and the market sentiment at the moment is positive over the rise of the prices of cryptocurrencies.
So researchers have concluded their finding by stating that multiple sectors are indicating that the market trust will return in 2023. The first half of 2023 is expected to be more turbulent than the second half of 2023.