Crypto’s “Annus Horribilis” Is Almost Ending

Just like for most stock markets, 2022 was a real annus horribilis for the crypto exchanges and the prizes of most coins. The Latin term usually denotes a year marked by many disasters and denotes a difference from years gone by. Where the first quarter of 2022 still felt like ‘fair to good’, it went downhill especially from April of this year and traders can only eagerly look forward to 2023.

It sucked.

fin

— The Wolf Of All Streets (@scottmelker) December 19, 2022

It also felt that way for institutional investors. James Malcolm of the UBS bank explained this week that he spent a good 70% of his time in the first half of the year explaining crypto to private investors, but by the end of the year this percentage has dropped to just 10.

Recent stats have shown that only around 4.5% of the global population is invested in crypto (2022). Each year this number increases steadily.

We're all early adopters.#crypto

— The London Crypto  (@SerLondonCrypto) December 19, 2022

The largest digital currency, Bitcoin, lost a good 60% of its value this year.

Bright spots

However, there were also some bright spots. The mid-September “Merge,” Ethereum’s transition from proof-of-work to proof-of-stake could prove critically important if crypto were to rebound in 2023, something many banks are predicting.

This event was a technological feat and one of the lone positive events in a year that otherwise has been rather dark for crypto.

Said Anthony Georgiades, co-founder of the Pastel Network blockchain.

These upgrades will make the Ethereum ecosystem far easier to use for people all around the world. Because of all this progress, it’s hard not to be a crypto optimist going into 2023.

Risk level of crypto traders in 2022 pic.twitter.com/XWBkhq4Ck6

— nftbadger (@nftbadger) December 20, 2022

Banks are therefore positive about the prospects for crypto in 2023 and think a revival is possible. Let’s hope they’re right.

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