Saturday, January 28, 2023

Bitcoin Lost Over 60% in 2022 and the Pressure May Continue

With the exception of bondholders, holders of virtually every financial asset have faced the effects of a 2022 storm. Bitcoin And this cryptocurrency,

bitcoin price It is down 64% from around $30,000 to less than $17,000 on December 31, 2021. In annual terms, this is the worst movement for what it was created without yet achieving: as a vehicle to outrun inflation.

In percentage terms, the negative period that includes this decline in bitcoin is only surpassed by its decline of nearly 84% between December 2017 and January 2018. In terms of capitalization amounts, there is no comparison.

Bitcoin’s decline in 2022 comes in a year when professional investors are starting to turn their attention to the technology. This is one of the reasons why euphoria increased the amount of falls bigger and bigger.

risky assets

It was the features of this market that once again brought misfortune to digital enthusiasts. The crashes of Terra Luna, FTX, Alameda Research and BlockFi stablecoins highlighted the discussion about the problems with its lack of regulation.

Its connection to stock markets, especially large technology companies, has put an end to the thesis, at least this year, that bitcoin is digital gold or a form of protection of value, similar to what the dollar offers.

Quite the opposite. Bitcoin has been affected by a high inflation environment, pressured by episodes of aversion to risk assets and, above all, by expectations of a more “tight” economy due to rate hikes by central banks.

bitcoiners don’t give up

Despite this headwind, its price recovered in a few sessions due to a reduction in inflation in the most recent data from the United States and a 50 basis point increase in Federal Reserve rates after four increases of 75 basis points.

The most recent ceiling for bitcoin was $18,373 on December 14, just minutes before the Fed eased into rate hikes. Although it slowly lost it, the move showed that crypto enthusiasts are far from giving up. ,

A survey of 40,000 users of the Explorer service of Blockchain.com, the largest cryptocurrency site by traffic in the world, revealed that 40% of respondents plan to buy more crypto in 2023. Do you?

Nation World News Desk
Nation World News Deskhttps://nationworldnews.com
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
Latest news
Related news