Bitcoin continues to fight | Profile

In 2022, without a doubt, it was a year to forget that the cryptocurrency market would hardly overcome, similar to bitcoin (BTC) which, 65% collapsed. However, this is not new for the industry which has experienced four main cycles bullish and bearish in their 12 years of life.

According to the website that counts the times that the bitcoin “has died”, 99bitcoinsthe most famous cryptocurrency in the world by market capitalization has been buried by the media and detractors some 467 times. The first of these was reported in December 2010, while the last was the November 30 of 2022.

According to the aforementioned website, the year with the most “deaths” announced for the bitcoins It was in 2017, when “experts” and various media outlets “murdered” the cryptocurrency at least 124 times.

Bitcoin hit its lowest level in three months

Today, both bitcoin and Ethereum are immersed in a crypto winter that will be damaged more than expected. The price of BTC crashed to fall below the $17,000 per unitwhile ETH filed a similar sell-off.

How do you explain the 2022 that the crypto market had?

Bitcoin accumulates a loss of 65% of its value in 2022, while Ethereum one of 68%. The bankruptcy of key companies in the sector, the most recent one from FTXand the fight of Federal Reserve to contain inflation and its own rate hike They darken 2023 for crypto assets.

Likewise, the capitalization of the global crypto market in 2022 plummeted to less than $900 million from more than $2 trillionaccording to slogan The blockthe US portal specialized in digital assets.

Bitcoin’s 365-day retracement was forceful. In December 2021, it was trading at around US$50,000, after having reached the all-time record of US$69,000 in November of that same year, a few days before the end of 2022, its price is below US$17,000.

When did the decline start?

The BTC crash began in January when cryptocurrencies closely linked to macroeconomic events. The leading cryptocurrency was necessarily linked to the movement of the Nasdaq 100reaching 0.92 at the end of January, according to data from The block.

The Nasdaq 100 plunged down 9% in January at the same time bitcoin will finish almost 20%: the largest capitalization cryptocurrency usually has a beta version of up to three times the US stock indiceswhich means it’s up three times more volatileaccording to the aforementioned portal.

Bitcoins in fall 20220615

“These winters are often marked by people losing interest in the crypto market as returns fade. Basically, it becomes a waiting game for many investors who don’t trust the state of the market and much less in the macroeconomic context,” he said in statements to PROFILE Mauro Libermanpartner of crypt station and specialist in blockchain and metaverse.

“It must be taken into account that during the pandemic large volumes arrived from the hands of numerous investors, who soon found that their short-term expectations, due to high speculation, were not fulfilled together with the classic volatility of the crypto market. This is a simple rule more market boom, more people in it, more noise and hardness when falling”, sentenced Liberman.

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“If we look at the history of bitcoin, born in October 2008, paradoxically a year affected by a global economic crisis, bitcoin also had many crises in its short life. But never like this year, because the crises were always external to bitcoin, instead, this time it’s an internal crisiswhere the shepherds who took care of the flock ended up being the wolves”, he said for his part Jose SarasolaCEO of Cryptogranjas to PROFILE.

“The bankruptcy of FTX, the world’s second largest cryptocurrency exchange, continues to make headlines around the world. But It is not the first time that an exchange The big one flies through the air,” commented Sarasola.

“In 2014, 70% of cryptocurrencies were traded by MT. Gox, a Japanese exchange that had a monopoly on bitcoin transactions and commanded a larger market share than Binance and FTX combined today. And it flew through the air in 2014, crashing the price of bitcoin in a few hours.added Sarasola.

“That is, it is not the first time that a bitcoin giant has gone bankrupt. Nor will it be the last. But this year the difference was that the coup was generated by the same institutions that called themselves “pro-bitcoin”like Celsius, moon, FTX, among others,” he lamented.

Both experts consulted by this means agreed that these factors were mentioned above they sparked an explosive combination that makes this crypto winter not the same as others.

Has bitcoin found its value floor?

“There is a kind of revaluation of the market, in this dynamic it is likely that new floors will continue to be tested and a long lateralization will continue. This may also mean holding only fundamentally strong, large-cap and safety projects,” Liberman responded.

What are the predictions for 2023?

“In this stage It could be said that 2023 is going to be a pivotal year. If other giants of the crypto world like Binance goes the way of FTXso he bear market it will be long But if, instead, they managed to stabilizeas soon as the Fed stops raising rates and I want to reactivate the economy, so bitcoin and the main cryptocurrencies of the ecosystem they are going to start lifting”, asserted the CEO of Cryptogranjas.

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And he added: “When they overcome the barrier of US$ 30 thousand there are many possibilities that Bull market start again. That is why there are many investors who consider that bitcoin It is cheap and it is an opportunity to invest. That explains why the price does not drop below US$16,500,” she added.

“The cryptocurrency market is correlated with the stock indices, to the extent that the macroeconomic context improves, and conditions can be established to have clearer with the major players in the industry, we will find the light at the end of the tunnel”, Liberman concluded for his part.


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