Crypto Market in 2023: VC Funds, Banks, and Starbucks to Invest Despite Retail Investor Uncertainty

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• Jacquelyn Melinek predicted that retail investors will sit out of the crypto market in 2023.
• VC funds will continue to invest in the crypto space, and banks and big brands like Starbucks will be entering the arena.
• Melinek stated that trust needs to be rebuilt in the crypto ecosystem in order for it to get its mojo back.

Cryptocurrency has been having a tumultuous year in 2022, with major events such as the collapse of Terra shaking the digital asset sector. Jacquelyn Melinek, senior crypto reporter at TechCrunch, recently talked to CNBC Market Alert about what lies ahead for the crypto market in 2023.

Melinek predicted that retail investors will likely sit out of the crypto market in 2023, as many investors have lost faith in the space due to its tumultuous year. However, Melinek also stated that there are true believers in the crypto space who will continue to remain and build the sector.

When asked who will be the main investors in crypto in 2023, Melinek stated that VC funds will continue to invest despite the issues experienced with FTX. Additionally, big brand businesses like Starbucks will be entering the space, as well as banks.

Melinek also noted that trust needs to be rebuilt in the crypto ecosystem in order for it to get its mojo back. She stated that regulators need to step in and create a framework instead of using old-school techniques that are used with traditional markets.

In conclusion, the future of the crypto market in 2023 will depend on the amount of trust that can be restored in the ecosystem. Despite the turbulence of the sector in 2022, VC funds, banks and big brands will still be investing in the crypto space, with or without the retail investors. It is now up to the regulators to create a framework to help rebuild trust in the crypto market and ensure its long-term success.