All cryptocurrency investors want for this new year is to put 2022 behind them and look forward to a flip in the market when it comes to Bitcoin.
Like nearly all cryptocurrencies, bitcoin suffered major losses in the previous year. BTC lost nearly 65% of its value throughout the duration of 2022.
Already showing signs of decline, Bitcoin started off at the $45,000 level – a significant decline from its 2021 all-time high of $64,978 on October 11.
Things really took a turn for the worse on April 5th, when bitcoin experienced its first major tumble in what would soon be called the “crypto winter”.
At that date, BTC went down by over 10% after the SEC indicated that it would begin its year-long interest-raising policies in order to tame America’s inflation. Bitcoin reached below $31,500 for the first time since 2020, and as it turned out, that would only be the beginning.
Since then, the world’s largest cryptocurrency by market capitalization continued to fumble amid the SEC interest-raising pressures. On June 18 it reached below $20,000 for the first time in years.
Since then, the world’s most famous crypto fell by another 20%, reaching below $16,000 after the FTX crisis collapsed the entire market.
However, bitcoin is far from being the only one affected. In fact, its 65% losses are laughable when compared to tokens like Solana or Terra, both of which lost over 95% of value in 2022. On top of that, the total crypto market cap fell by a whopping $1.46 trillion
A Potential For a Spring?
Although the losses might have been more impactful due to BTC entering 2022 after the best-performing upward trend in its history, the year 2022 wasn’t even its worst year to date. In 2018, right before the crypto boom, Bitcoin lost over 78% of its value.
In fact, the potential for bitcoin growth in 2023 is almost “expected”. At least when analyzing the token’s price history throughout the years.
The leading crypto only had three negative yearly performances so far: 2014, 2018, and 2022.
In the subsequent years, crypto was not only able to recover its price, but also grew at least threefold in two to three years after.
On top of that, 2023 is the year before the next bitcoin halving. These years generate a lot of market optimism, and the price of the token is met with a well-welcomed increase.
If these previous chart movements repeat, 2023 could very well be the year Bitcoin recovers from one of the most catastrophic moments in cryptocurrency’s history.