As the world ushered in the 23rd year of the 21st century, the cryptocurrency market celebrated the fourteenth anniversary of Bitcoin (BTC). However, the bleeding recorded in 2022 has increased the fear of holding digital assets. Additionally, over $2.2 trillion has been wiped out of a decade-old market in less than twelve months. Nonetheless, market strategists are optimistic that the crypto market will stabilize in 2023, with some calling for a mini bull market.
While the crypto market is largely dependent on speculative aspects, analysts unanimously agree on the macroeconomic aspects to observe this year in the digital economy. Notice that the price of Bitcoin and some of the top altcoins like Ethereum have shown a strong correlation with the traditional stock market.
Additionally, the cryptocurrency market has been heavily regulated around the world following the implosion of Terra Luna and FTX.
Topping the list is the Ethereum community eagerly awaiting the network update to allow withdrawals of staked Ethers.
“Withdrawals are as good as done,” Marius Van Der Wijden, software developer at the Ethereum Foundation, Noted. “All that remains is to test the code that allows withdrawals, which should be done for the most part by February/March,” added Van Der Wijden.
Additionally, cryptocurrency traders will be watching Federal Reserve (Fed) meetings, which are considered high-impact news. For example, FOMC meeting minutes are 8 times a year with the next publication scheduled for February 22, 2023.
Notably, the FOMC meeting minutes are a detailed record of the most recent meeting, which provides in-depth information about the economic and financial conditions that influenced the committee’s vote on setting interest rates.
Key Events to Watch in Crypto Space
Following the high volatility recorded in 2022, the crypto community understands that regulation will play a crucial role going forward. In 2023, all attention is on the Ripple v SEC lawsuit, which is expected to end after two years of legal proceedings. With the loss of the LBRY case to the SEC, crypto firms have teamed up to support Ripple in the case. Additionally, twelve crypto companies, including Coinbase Global Inc., have joined the Ripple case via formal amici briefs.
The decision on the Ripple v SEC lawsuit should be a case example for most decentralized finance (DeFi) platforms like ERC20 tokens.
The FTX case decision is also highly anticipated as investors wait to get their money back. After SBF pleaded not guilty in US court, the next hearing is scheduled for later this year.