2022 was bad for crypto, 2023 will be better?
There is no doubt that 2022 was a bad year for the cryptocurrency world and those associated with the industry in any shape or form.
Whether you had virtual currency because you enjoyed using it as a preferred option at a bitcoin casino to play your favorite games, for the future as a potential investment, or simply because you were interested in what the rage was all about, everyone has been influenced at some point by the news that had consistently been revealed.
Why was 2022 a bad year for cryptocurrency?
Naturally, when thinking about why something might have been bad for cryptocurrency, many will immediately think about the price. In fact, one of the biggest things about virtual currency is the fact that it is highly volatile and its value can tend to fluctuate by large amounts.
We saw this in the first half of the year, with the likes of Bitcoin and Ethereum both crashing more than 50% from their all-time highs that had been experienced in the closing stages of 2021. Since the height of the 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 sector. Also, the fact that Bitcoin had experienced its worst quarter in more than a decade didn’t help matters. According to figures, it lost around 58% of this value in the second quarter of this year; with worse results for a quarter since 2011.
Reasons that have been attributed to the decline include:
- Macroeconomic pressures – The US Federal Reserve was aggressive with its monetary policy
- TerraUSD collapse
- Celsius decided to pause withdrawals
- Three Arrows Capital was liquidated
- CoinFlex-‘Bitcoin Jesus’ Argument
Will 2023 be a better year for cryptocurrency?
Given all the problems that cryptocurrency and the industry have gone through during the current calendar year, there will be many who will wonder if next year can return to the heights and glory days that virtual currency has been known to have.
There is a lot of optimism surrounding Bitcoin holders at the moment, and the average crypto holder expects the coin to reach levels above $38,000 by the time 2023 begins. A survey found that holders are currently more optimistic than the general public about the potential price values that can be reached, with many of them consistently predicting that it will be higher than the projected value.
Of course, it would be easy to suggest that the confidence that the price can return as high as predicted is because the people asked currently hold the coin themselves. However, they can also be considered experts in this field and know more than the general public with regard to the analysis than those who may not be as educated on the topic of cryptocurrency.
In fact, the topic of cryptocurrency is one that continues to emerge with each passing year as many more people become more accepting of it and its place in the world, which is perhaps why 2023 could be a good year for it as well. More interest is likely to mean that more people start to learn more about how it works and what it does, which could then make the interest too significant to be ignored by others, thus potentially having a knock-on effect on the price of Bitcoin and other virtual assets next year.
Final thoughts
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 the coins can fluctuate wildly at any given rate.
It cannot be denied that 2022 has been almost disastrous for virtual currency, with the price falling by over 50% for many, yet there still seems to be some confidence in some quarters that 2023 could be a year to look forward to , especially with many predicting that Bitcoin could reach over $38,000 by the time January arrives.
Image by Sergei Tokmakov, Esq. Terms.Law from Pixabay
