• Jacquelyn Melinek of TechCrunch spoke to CNBC Market Alert about the future of the crypto market in 2023.
• Retail investors are likely to sit out of the crypto market in 2023, but VC funds and big brand businesses such as Starbucks will continue investing.
• For the crypto ecosystem to „get its mojo“ back, trust needs to be rebuilt and regulators need to step in with a framework.

Cryptocurrency and the digital asset space has seen a tumultuous year in 2022, with many industry-changing events such as Terra collapsing, leading to retail investors losing their trust and confidence in the crypto market. In light of these events, Jacquelyn Melinek, the senior crypto reporter for TechCrunch, talked to CNBC Market Alert about what lies ahead for the crypto market in 2023.

Melinek believes that there is a high chance that retail investors will sit out of the crypto market in 2023, especially those who have been interested but have seen many industry-changing events such as Terra’s collapse. At the same time, she believes that the true believers are those who are building the space and these people will keep investing in the sector in 2023. As for who will be the main investors in the crypto market, Melinek believes that venture capital funds will not stop investing just because of what happened with FTX and big brand businesses such as Starbucks are also getting into the space. Banks are also getting into the space and this could be a great opportunity for the crypto ecosystem to “get its mojo” back.

In order for the crypto ecosystem to rebuild its trust and faith, Melinek believes that regulators need to step in and create a framework instead of using the traditional methods used in the traditional market. This framework should be able to protect investors and create a safe environment for the crypto market to grow and thrive. With the right framework, investors should be able to have more trust and faith in the crypto market and be confident in investing in it.