There are trending developments to watch in the crypto world as we move towards 2023. However, even though we are in the holiday season, the activity in crypto always continues. Here are the events that will potentially be on the agenda in the next few weeks for Bitcoin, DOGE, ETH, XRP and SHIB…
Sam Bankman-Fried to appear on trial
Sam Bankman-Fried, former CEO of FTX, will appear in a legal hearing in New York on January 3 after a string of fraud charges against him. Bankman-Fried was arrested in the Bahamas on December 12. He then came to the US last week and was subsequently released on bail. Court proceedings will have huge implications not just for Bankman-Fried but for the entire crypto market.
Bad weather and Bitcoin
Weather related issues will continue to affect Bitcoin miners in the coming days. Last week witnessed a major winter storm that swept through the United States, causing severe temperatures and power outages in many parts of the country.
The weather event in particular has created a unique set of challenges for Bitcoin miners in the US. They rely on access to reliable electricity to run their operations. Therefore, any prolonged power outage has serious effects on mining operations. In addition, extreme cold causes system failures that further hamper operations.
FTX, Binance and market stability
The recent collapse of one of the largest cryptocurrency exchanges, FTX, has made many investors nervous about the safety of their funds. In response, exchanges tried to show proof of reserve to reassure customers that their money was safe. Even Binance has seen exits recently, according to a Reuters report. He struggled to restore trust, with the company’s leader pledging to “lead by example” in embracing transparency.
https://twitter.com/cz_binance/status/1606435376163323904
Binance CEO CZ has engaged accounting firm Mazars for an agreed procedure. This differs from a traditional financial audit in that it only requires the accountant to perform certain verification procedures requested by the client. As such, Mazars’ work with Binance has not exceeded the level of confidence that a full independent audit can have, especially with regard to the exchange’s liabilities. This was further escalated when Mazars removed crypto endorsements and announced that it would no longer work with crypto companies.
Without a full audit, crypto companies have no obvious way to verify their reserves. Still, CZ also questioned the ability of major accounting firms to properly audit crypto exchanges. Over the next few weeks, it will be interesting to see if there are any new developments on this front.
The fate of Bitcoin and altcoins in the new year
The crypto market has seen more than its fair share in 2022. By the end of the year, Bitcoin had settled at around $16,900 from its ATH level of $69,000. Other cryptos are struggling amid financial crises facing multiple firms.
Although the crypto market has been ravaged by losses this year, many enthusiasts are hopeful for 2023. Investors have seen sharp drops in trading volume lately. Still, it’s hard to predict when the next recovery will begin. Some analysts say it will take some time before we see the price stability of different altcoins besides Bitcoin. As Kriptokoin.com, we have included what the analysts who are waiting for the bull have to say in this article.
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