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.

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.

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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.

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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. 

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

Author
Milko Trajcevski

Milko Trajcevski is a DailyCoin news reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs). Location: Skopje, Macedonia