Undoubtedly, 2022 was a bad year for the cryptocurrency world and those associated with the industry. The brutal comedown has led to the currency losing $2 trillion since the height of a massive rally in 2021.
The crypto market, as a whole, is largely stalled. While no one knows, some experts say crypto prices could fall even further before any sustained recovery. On top of this, the dramatic implosion of cryptocurrency exchange FTX, a so-called unicorn startup valued at $32 billion, is just the latest bit of bad news for investors in Bitcoin, Ethereum, and other digital currencies.
Whether you held virtual currency for investment, to purchase goods, use it in crypto casinos, or you were simply just interested in what the hype surrounding crypto was all about, many people have been impacted by this drop in value.
At the time of writing this article, Bitcoin prices were hovering around the $16,500 mark, a far cry from the cost of just over $46,000 that Bitcoin was trading at on the last day of 2021. Investors hoping that rising interest rates and higher levels of inflation that we see globally would be good for digital assets, like crypto, have been hit with a rude awakening. Crypto has felt the storm just like stocks and bonds have, which proves there is no place to hide in this current market, where worries about increased rates and recession reign.
While these figures are worrying for the world of crypto, this isn’t the first time there has been a so-called crypto winter. Bitcoin prices have been notoriously volatile over the past few years. With this in mind, many wonder whether 2023 might see a return to the glory days that virtual currency has been known to have.
There is some optimism in the air surrounding Bitcoin holders at present, with some expecting the coin will reach levels of around $34,000 in 2023. Crypto holders are said to be more optimistic than the general public about this hike in value, with some people predicting the value will go even higher than the current prediction.
People’s interest in crypto remains high, continuing to be a hot topic in both the business world and popular culture. With many more people becoming more accepting of it and its place in the world, the rising interest and popularity could mean good things for 2023. More interest is likely to mean that more people learn about it, understanding how it works and what it does, which could have a knock-on effect on the price as more people jump on the crypto bandwagon.
While it is common knowledge that the value of crypto is highly volatile and prone to fluctuate, there is no denying that 2022 has been a lousy year for virtual currency. However, there appears to be some new confidence in the early quarters of 2023, with predicted values for the crypto world to hold onto while they navigate the current storm.