Sentiment: Three Scenarios to Watch in 2023’. Last year proved this, and 2023 – the first year the sector faces a positive interest rate environment – will be unlike anything we have seen so far. Implications: The pivot, when it comes, will help resume the flow of funds back into global capital markets and trigger a rally, including in crypto assets. This would damage sentiment and investor appetite for various asset classes, including crypto, and prolong the industry’s downturn. This has led to a growing acceptance and endorsement of crypto assets by institutional investors, prompting policymakers to work on a raft of evolving regulations around the trading, custody and investment of crypto assets.