Crypto market nears ‘regulatory certainty’: Expert

Doha, Qatar

The global trend is positive for cryptocurrencies and the crypto market is moving ever closer to regulatory certainty, the head of a major cryptocurrency financial services firm said on Thursday.

Speaking at the Qatar Economic Forum in Doha, Peter Smith, co-founder and CEO of blockchain.com, said that “2023 has been largely positive for the industry. year, the digital asset class would be the best performing asset class in financial markets with around 45% on the year so far.”

He noted that it might be concerning that there are fewer developers contributing to open source crypto projects today compared to three years ago.

“In each cycle, we’ve seen a slight decline in the number of contributing developers, and that’s something we’re watching closely. However, in this current cycle, we’re actually seeing growth in the developer community, even in 2022,” he added. .

He said investors are experiencing an incredibly cyclical market with a roughly four-year cycle in the crypto market.

“One of the reasons for its cyclicality is that it is still a relatively small market,” he said, adding that the total value of all major cryptocurrencies in existence today is falling. amounts to about 0.6 times that of Apple.

Addressing the potential impact of the US debt ceiling crisis on the market, he said that if the US government defaults, the crypto market is likely to experience a rapid pullback and then a very strong surge.

At the beginning of the year, the United States reached its debt ceiling, which led to the debt ceiling crisis.

On May 1, US Treasury Secretary Janet Yellen warned that the temporary measures taken to combat the effects of the crisis may be insufficient.

President Joe Biden’s administration and Republican lawmakers are at an impasse over raising the debt ceiling.

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