The cryptocurrency industry and anyone associated with it was clearly in trouble in 2022.
You may have held virtual currency to make it easier to play your favourite gambling games. Or you might be holding it in the hope of making an investment.
What made 2022 such a poor year for cryptocurrency trading?
When considering why something could have been bad cryptocurrency, most people will first think of its price. One of the greatest things about virtual currencies is its volatility, which can cause it to fluctuate in large amounts.
This was evident in the first half year with Bitcoin and Ethereum plummeting by over 50% from the highs reached in 2021. It has been calculated that $2 trillion in value was lost between the peak of this massive rally and today.
With this information, you can easily understand why the year 2022 is being called a terrible one for the cryptocurrency industry. Its cause has also been hurt by the fact that Bitcoin experienced its worst quarter in over a decade. It lost 58% of its value during the second quarter, making it one of its worst quarters since 2011.
These are some of the reasons that led to this decline
- Macroeconomic pressures – US Federal Reserve was aggressive with its monetary policy
- TerraUSD collapse
- Celsius decided to suspend withdrawals
- Three Arrows Capital was closed
- CoinFlex-’Bitcoin Jesus’ argument
Is 2023 a more promising year for crypto?
Many will wonder if next year will bring back the glory days of virtual currency, given all the problems that the cryptocurrency industry and its peers have experienced during this calendar year.
Bitcoin holders have a lot of optimism right now, and the average Bitcoin holder anticipates that the coin will rise to levels above $38,000 by 2023. Surveys revealed that Bitcoin holders have higher expectations than the public regarding the possible price ranges that are achievable. Many anticipate that this will prove to be more than they had predicted.
You could easily say that confidence in price returning as high as forecasted is due to the fact that those surveyed hold the currency. They can be thought to be experts on this topic and have more knowledge than others about its analysis.
The topic of cryptocurrency has been gaining more attention with every year. As more people accept it and place it in their lives, it is a growing issue. Increased interest in cryptocurrency will likely lead to more people learning about it and its functions. This could have a positive effect on Bitcoin’s price and the value of other virtual assets.
The fact that cryptocurrency assets, such as Bitcoin or Ethereum, are highly volatile and their prices can change dramatically at any time is something you should know.
Although it is obvious that the 2022 financial crisis has made virtual currency almost unprofitable, its value dropped over half a million dollars for most. Yet, many believe 2023 can be a good year, particularly with some predicting that Bitcoin will reach more than $38,000 in January.
Sergei Tokmakov Esq. Image Terms.Law at Pixabay