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Year 2022 Marks Worst Year in History of BTC and Global Crypto Economy

Bitcoin Cryptocurrency News Price Analysis Terra (LUNA)

Bitcoin’s Worst Year in History

The year 2022 was by far the worst year in the history of the crypto economy, especially with regard to Bitcoin.

Throughout this year crypto winter season prevailed and continued chopping of cryptocurrencies’ market caps without a pause. Now the year is about to end but it seems impossible that the crypto winter season may end any sooner.

Within this year, a large number of crypto industry giants fell apart which included amongst others FTX and Terra Luna at the top.

Bitcoin Pundits Lost Precision

Surprisingly, none of the investors were able to precisely predict future price projections of Bitcoin and other cryptocurrencies.

The majority of crypto economy pundits predicted enthusiastic predictions regarding Bitcoin prices. However, none of them came true.

Amongst them, there were few who however predicted correctly that Bitcoin’s price would fall below $20,000.

Bitcoin Rip Off

Bitcoin was switching hands at $69,000 in mid-November, 2021. There were predictions that at the start of 2022, Bitcoin’s value would exceed $100,000. However, the crypto winter season didn’t wait for 2022 to commence.

Soon after 15th November 2022, the crypto market started to decline and to date hasn’t been able to stand steadfast.

More than 75% value was detached from Bitcoin. Its market cap was sliced down less than half from a two trillion dollar economy to less than one trillion now. All this happened between November 2021 and 20th December 2022.

This is the worst fall Bitcoin has suffered ever since it started trading. The first major fall Bitcoin suffered was back in 2018. It was in early 2018 when BTC faced the worst fall.

Its price was at a high of $19k until it bottomed out. Since then, the price of BTC kept increasing gradually and it finally reached a level when its value resurged to the same level in December 2020.

However, back in 2018, the valuation of the asset was not high at all as it was worth less than $100 billion dollars.

Collapse and Failures of Prominent Crypto Projects

Shock waves were sent throughout the crypto industry when high-profile crypto entities as well as prominent projects failed miserably.

The first shock wave came when the stablecoin UST disaster occurred in May this year. Resultantly, the stablecoin’s native token LUNA was completely ripped off in terms of value.

Individual and institutional investors, who were exposed to LUNA, incurred unthinkable losses.

LUNA’s collapse also ended up bankrupting Three Arrows Capital which was eventually forced into facing liquidation.

The biggest shock wave however came when FTX filed for bankruptcy a month ago in November. FTX is perhaps the main cause for initiating a chain of shockwaves and guarantees aftershock effects for a long time in the future.

Crypto winter season, also prevailed over conventional markets, especially stocks.

The crisis that surfaced in 2022, particularly in the crypto industry, cannot be forgotten nor can it be buried in the past.

Investors Reverting To Gold

Investors isolated Gold when Bitcoin value was acquiring phenomenal back-to-back gains in 2021. Bitcoin was even regarded as a better hedge than Gold.

However, the global economic conditions, worldwide inflation, and interest rate hikes, brought hope back into stock markets.

Market watchers are now optimistic that the year 2023 would favor those investors who would prefer Gold over other investable instruments.

It may be noted that crypto is not included in ‘other investable instruments’ of which the market watchers speak of.

2023 Will Bring Hopes Back In Stock Markets

CrossBorder Capital’s MD, Michael Howell stated that gold would be investors’ number one choice in 2023.

He suggests that in the coming year, better investment opportunities would only be provided either by Gold or corporate debt.

Howell argued that much greater stress could be expected in 2023 because of strict financial policies and slowed-down economies.

Consequently, investors would revert back to Gold from which they had been separated by Bitcoin, said Howell.

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