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Top 3 Cryptocurrency Trends for 2023

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I am Ben Stock, a highly experienced news writer with several years of experience in the industry. I currently work for The News Dept as an author, where I specialize in market-related stories. My passion and expertise lies in providing readers with accurate and up-to-date information on the latest financial developments from around the world. I have been recognized for my clear writing style and ability to explain complex topics in simple terms that even those new to financial markets can understand. My research skills are unparalleled when it comes to uncovering data points and trends concerning stocks, bonds, currencies and other assets that could affect global markets.

The Ethereum Shanghai hard fork

Although Ethereum upgraded the blockchain from proof-of-work (PoW) to proof-of-stake (PoS) in 2022, ETH holders were unable to withdraw staked ETH or their rewards from the network. Finally it will be possible after the hard fork of Shanghai scheduled for April 12.

Understand “Fork” in just 3 minutes.

This will be a major trend, as it will be interesting to see if the number of stakers changes after the update. For example, if the number of stakers increases, it means that investors have confidence in the Ethereum blockchain and are willing to lock their ETH tokens. That will probably happen.

Fed interest rate hike

Recently, cryptocurrencies have been affected by the Fed’s decisions as much as traditional financial assets such as stocks and bonds. Cryptocurrency price changes during Fed decisions clearly show this and generally follow the same patterns as they have been positive related to tech stocks.

This year, the Fed is expected to continue raising interest rates to contain inflation, which could make cryptocurrencies more attractive than stocks and bonds. Therefore, you should keep an eye on these changes to determine how to trade the markets for better results.

Also read Is this payments giant gearing up for cryptos?

Regulation of cryptocurrencies

Following the collapse of the FTX exchange in 2022, which cost its customers billions of euros, financial regulators sought to control the sector more tightly. Until now, each jurisdiction has formulated its own regulations, but there are proposals to create one international regulations.

The question is what the scope of these regulations will be, as they will certainly affect the way we interact with cryptocurrencies. In particular, we should expect less decentralization and more control.

Source: The Blog

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