Bitcoin hit its all-time high in November 2021, at $68,789, and is now trading at below half that amount. This is an incredible drop for a currency that has been considered the most reliable long-term crypto investment for many years. Despite this decline, Bitcoin still maintains a strong position in the crypto market, driven by both institutional and retail investor interest. Some of the world’s most recognizable companies now hold BTC in their investment portfolios.
Cryptocurrency prices have risen significantly in recent years, with the emergence of websites such as Robin Hood and PayPal making it easier to invest in cryptocurrencies. The rise in popularity led to greater investor awareness and increased availability of capital, which fueled the soaring price. The recent crash in the market was partly due to the larger economic downturn and the failure of many cryptocurrency startups. These companies took on too much risk and then saw their value plummet.
The current market capitalization of cryptocurrency is over $870 billion, down from $2.9 trillion in November. According to CoinMarketCap, Bitcoin has fallen more than 70 percent since that time. Despite these setbacks, the cryptocurrency market is still considered the most valuable in the world. Despite the recent volatility, the popularity of the currency keeps its investors happy with huge profits.
In September, the Chinese government banned mining and transactions in crypto currencies. In June, US president Donald Trump called the cryptocurrency a scam. FBI agents confiscated millions of dollars worth of bitcoin from criminals and big banks stopped processing payments to the popular cryptocurrency exchange Binance. And the US Federal Reserve is considering introducing a central bank digital currency. So, what happened to bitcoin in 2022? So far, the world’s largest cryptocurrency exchange is the United States’ largest.
While this recent crypto meltdown is not good news for many, some cryptocurrency supporters believe that it could be the start of a new trend. The past has proven that cryptocurrency prices are volatile and unpredictable, and they often bounce back strong. However, cryptocurrency fans have to sit tight and wait for a reversal in the price.
As Bitcoin grows and becomes more widely accepted as a payment method, it is becoming a coveted investment option. It is also a viable option for institutional investors. However, the upcoming launch of a Bitcoin spot ETF will also impact the price of BTC. This could be an issue, as the SEC has rejected Bitcoin spot ETF proposals due to concerns about market manipulation.
The price of bitcoin is expected to fall below the $100,000 mark in 2022. The price has been steadily falling since November’s high, but some experts believe it will rise back to the $50,000 mark. A recent Morning Consult survey of over 4400 U.S. investors found that many Americans still believe in bitcoin’s potential to reach that high level.