There is no doubt that 2022 has been a bad year for the cryptocurrency world and those associated with the industry in any form.
Whether you hold virtual currency because you like to use it as your preferred option on a bitcoin casino to play your favorite games of chance, for the future as a potential investment, or just because you were interested in what rabies was, everyone has been touched at some point by the new which has never ceased to be revealed.
Why was 2022 a bad year for cryptocurrency?
Naturally, when thinking about why something could have gone wrong for the cryptocurrency, many will immediately think of its price. Indeed, one of the most important aspects of virtual currency is the fact that it is very volatile and its value can tend to fluctuate wildly.
We saw it in the first half of the year, with people like Bitcoin and Ethereum are both crashing more than 50% from their all-time highs that were recorded in the latter stages of 2021. Since the height of this massive rally, it has been estimated that around $2 trillion had been lost in value between then and now.
Naturally, with this in mind, it becomes extremely easy to begin to understand why 2022 has been described as a bad year for the cryptocurrency industry. Moreover, the fact that Bitcoin had its worst quarter in over a decade did not help its cause either. According The figures, it lost about 58% of that value in the second quarter of this year; posting its worst performance for a quarter since 2011.
Reasons that have been attributed to the decline include:
- Macroeconomic pressures – The US Federal Reserve has been aggressive in its monetary policy
- Collapse of TerraUSD
- Celsius has decided to suspend withdrawals
- Three Arrows Capital has been liquidated
- The CoinFlex-‘Bitcoin Jesus’ Argument
Will 2023 be a better year for cryptocurrency?
Considering all the troubles that cryptocurrency and the industry have been through in the current calendar year, many will wonder if next year might see a return to the highs and glory days that virtual currency is known to have.
There is a lot of optimism surrounding Bitcoin holders at the moment, with the average crypto holder expecting the coin to reach levels of over $38,000 by the start of 2023. A survey found that holders are currently more optimistic than the general public about the potential price values that can be achieved, with many consistently predicting that they will be higher than expected.
Of course, it would be easy to suggest that the confidence that the price can come back as high as expected is due to the respondents currently holding the coin themselves. However, they can also be considered the experts in this field and know more than the general public about its analysis than those who may not be as educated on the subject of cryptocurrency.
Indeed, the subject of cryptocurrency is one that continues to emerge with each passing year as many others increasingly accept it and its place in the world, which perhaps explains why 2023 could also be a good year for her. More interest is likely to mean that more people are starting to know more about how it works and what it does, which could then make the interest too big to ignore by others, thus having potentially a ripple effect on the price of Bitcoin and other virtual assets next year.
If you know anything about cryptocurrency, it’s probably the fact that digital assets like Bitcoin and Ethereum are highly speculative and the price of coins can fluctuate wildly at any given rate.
There’s no denying that 2022 has been near disastrous for virtual currency, with its price dropping by more than 50% for many, nonetheless, there still seems to be some confidence in some quarters that 2023 could be a year to look forward to, especially with many predicting Bitcoin could hit over $38,000 by January.
Image by Sergei Tokmakov, Esq. Terms.Law from Pixabay