2022- The Year In Review for Bitcoin And Cryptocurrencies, What’s Ahead for 2023?
Its been a year a major roller-coaster ride for Bitcoin and the entire cryptocurrency market this year in 2022. The market has dealt heavy blows of major bankruptcies that ensued amid the collapse of major ecosystem like the Terra LUNA as well as the recent collapse of crypto exchange FTX.
2022 has been one of the most brutal bear markets in the history of crypto space. Let’s take a look at the world’s largest cryptocurrency Bitcoin (BTC), which usually serves as the benchmark for the overall industry movement.
Bitcoin started the year of 2022 at around $46,000 levels. During the first quarter of the year, Bitcoin faced some turbulence along with global markets geopolitical factors with Russia’s invasion of Ukraine played a crucial role.
Although the BTC price made some recovery in the month of March 2023, it quickly came under major selling pressure in the next month of April. Things got worse going into May as the Bitcoin price tanked another 25% in the first few days of May following the massive implosion of the Terra LUNA ecosystem.
The collapse of the Terra ecosystem eroded more than $40 billion worth of investors’ wealth within a matter of a fortnight. Along with Bitcoin (BTC) the impact of Terra collapse was felt by the entire crypto space.
It was in June that the BTC price tanked under $20,000 for the first time in two years. Since then, Bitcoin made an attempt to jump above $20,000 three times so far, however, it met with massive selling pressure every time and is currently trading sub $17,000 levels.
As of the current price, Bitcoin has already lost more than 65% of its valuation this year and going into 2023, analysts are expecting a further downfall. Currently, there’s no major catalyst in sight which can help BTC come out of the selling pressure and get roaring once again.
As we head into 2023, the global macro outlook doesn’t look promising enough. Many market analysts on Wall Street are expecting a major correction in the global market with high likelihood of a US recession by the mid 2023.
As we know, Bitcoin and the entire crypto space has been largely following the broader equity market for years now. In the case of a US recession, Bitcoin might another leg of correction going ahead. If the Bitcoin price slips under $16,000, the next support level is at $13,800.