Bitcoin ended 2022 with a 60% drop. What can we expect this 2023?


2022 was an unpleasant year for those who expected Bitcoin to rise, however it was a year of opportunity to buy the digital currency as it fell 63% in 12 months.

According to cryptocurrency market behavior analysis platform Santiment, 2022 arguably solidified the thesis that news events impact the market.

The firm pointed to four events that influenced and continue to influence the prices of digital assets. These include the pandemic, the FTX collapsethe increase in interest rates around the world and the Russia’s war with Ukraine.

Geopolitical tensions in Europe and interest rate hikes raged for much of the year, causing Bitcoin to fall multiple times as more information was released to the public.

The market responded to several interest rate hikes from the Federal Reserve. The last 0.5 percentage point increase in fees was implemented in early December, causing Bitcoin to crash yet again.

The Terra (Luna) cryptocurrency collapse and the FTX exchange had similar effects on sector sentiment.

Overall, the cryptocurrency market lost over $2 trillion in market capitalization in 2022 and major cryptocurrencies like Bitcoin Y ethereum they fell well below their 2021 highs.

See how much the value of seven popular cryptocurrencies has changed in 2022, according to Cryptoreport’s calculations.

Terra: -99% Solana: -93% AMP: -93% Cardano: -80% Ethereum: -67% Bitcoin: -63% Dogecoin: -55%

A difficult year for the crypto market

2022 will probably be remembered as one of the toughest years for the cryptocurrency market, despite being a year in which digital currencies became more popular, with large companies betting heavily on the sector, with one disaster after another. , 2022 turned out to be a catastrophic year for the ecosystem.

In the midst of all the chaos and the crash of many crypto exchanges and projects, the biggest losers have been the investors. If the bear market crash wasn’t enough, millions of cryptocurrency investors who had their funds on FTX they lost their savings overnight.

The Luna cryptocurrency, which had a market of $40 billion, was one of the top five cryptocurrencies by market capitalization. With millions of customers investing in the token, the crash reduced people’s investment to zero in a matter of hours.

Therefore, 2022 will go down in cryptocurrency history as an annus horribilis. Investors will probably want to forget about the year and start over. After such a tumultuous period, one likely outcome will be the acceleration of industry regulations until 2023. This may restore some of the lost confidence in the industry.

What can we expect this 2023?

David Marcus, founder and CEO of cryptocurrency firm Lightspark, has disappointed bulls with his outlook for the next few years. The executive stated that Bitcoin will not be able to recover from crises caused by fraudulent companies until at least 2024.

It’s been two months since the FTX exchange crashed, but the ripple effect continues to rock the industry.

Marcus believed that the effects of the third largest cryptocurrency on the market will haunt the industry well beyond 2023. While he mentioned FTX only once, he said that “rogue players” will drag the market well beyond 2023.

Among the players who spoke out about the 2023 predictions was investment giant ARK Invest, whose chief executive, Cathie Wood, did not mince words when reacting to the events of nearly two months ago.

“The Bitcoin blockchain did not miss a beat during the crisis caused by centralized players. It’s no surprise that Sam Bankman Fried didn’t like Bitcoin: it’s transparent and decentralized. He couldn’t control it,” Wood claimed via a widely circulated tweet in mid-December.

Meanwhile, in terms of price action, opinions continue to differ on how the first quarter of 2023 might play out.

If you thought the stock market had a bad year, take a look at how the cryptocurrency market fared. According to CoinMarketCap data, the aggregate value of more than 22,100 digital currencies dropped from nearly $3 trillion in November 2021 to less than $795 billion by the end of December 2022. This represents a drop of around 74% in less than 14 months.

While it is not possible to name any specific exchange, there are many warning signs that FTX was not the last crypto exchange to fail. Auditing firm Mazars said last month that stopped working with cryptocurrency companies. The list of clients he has provided his services to includes Binance,, KuCoin, and others.

Therefore, we may see another big company break out and drive the price of digital assets down.

According to forecasts, the US central bank, the Fed, is expected to stop raising interest rates in the first quarter of the year. This could help prevent the cryptocurrency market from falling further.

However, the Bitcoin fund could be around $10,000 or a little less. This is because the stock market, which is highly correlated with the cryptocurrency market, has yet to bottom out and is expected to fall another 30%, according to industry analysts.

2023, therefore, could be another difficult year for Bitcoin and other cryptocurrencies. What will happen, however, remains to be seen.

Rate this news!

0 / 5 Number of votes: 1

Your vote in this news:

Click to rate this post!
[Total: 0 Average: 0]
Next Post

Lessons to be learned from Norwegian declassification

The expert: This way more people can get 1 million more in pension Published: October 10, 2022, 10:00 a.m. Updated: November 29, 2022, 1:20 p.m.Nicklas Andersson, savings economist Avanza. Fees are like tooth decay. The damage is not immediately visible, but over time the fees eat away at the pension […]
Nicklas Andersson, savings economist Avanza.

Subscribe US Now