Bitcoin is Experiencing its Worst Annual Start Since 2012: How Might 2022 End?

After breaking above $68k in early November, expectations for the pioneer crypto heightened, with many market analysts predicting that Bitcoin would hit $100k by the end of the year.

Bitcoin, however, failed to live up to expectations, ending the year at $46,306. While many expected a repeat of 2021, with Bitcoin running to multiple all-time highs at the start of the year, 2022 brought a new wave of downtrends.

Experiencing a six-day losing streak, sending its price below $40,000, Bitcoin is having its worst start to a year since 2012. Despite recovering above $42k, since the start of 2022, Bitcoin has lost 13% and 39% from its November 10th all-time high.

The year-to-date price chart of Bitcoin (BTC). Source: TradingView

2022 Could Get Worse for Bitcoin

Many sources have pointed to the COVID-19 pandemic and the relief packages as the start of Bitcoin’s rise to prominence among retail investors. 

However, with the Fed announcing it will become more restrictive, there has been a major drop in the price of Bitcoin.

Although investors have had more than their fill of losses, experts believe 2022 could get worse for crypto markets. According to Jay Hatfield, the CEO of Infrastructure Capital Advisors, Bitcoin could slump below $20k as the Fed reduces its liquidity injections.

With Bitcoin recovering above $40,000, an important technical support level for the digital token, there is hope that Bitcoin will embark on a rally to reclaim previous highs.

On the Flipside

Why You Should Care

Like in every industry, linear growth is nigh impossible. Although more volatile, Bitcoin’s decline and corrections are necessary for more expansion. 


Join to get the flipside of crypto

Upgrade your inbox and get our DailyCoin editors’ picks 1x a week delivered straight to your inbox.

    You can always unsubscribe with just 1 click.

    This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

    Rate This Article
    In order to improve, we give you the opportunity to rate DailyCoin content

    Milko Trajcevski has been in the crypto world for years, and as such has gathered both a skill for writing as well as a native prowess when it comes to understanding everything that occurs within that world. Through skilled writing and determination, he covers articles about cryptocurrency, tokens, blockchain, crypto-asset regulations, crypto wallets, exchanges, liquidity, DApps, forks, mining, security, and blockchain technologies. He is a professional with a track record of proven expertise within the crypto space.