- How Bitcoin went from a staggering $47,827 in January to $16,800 in December.
- December is still following a very bearish path, but there’s a positive outlook for 2023.
Bitcoin has been on a rough road for the most part of 2022, and although sentiments for the new year are still positive, Bitcoin might have followed certain turbulent patterns that led it to its current price point.
Bloomberg goes over the many ways in which Bitcoin slumped to its current price level, which sits at $16,851 at the time of this writing.
In January, Bitcoin almost had what could be labeled as smooth sailing. BTC started the year at $47,827. Come February, SEC fined BlockFi. Also, wormhole, a popular cross-chain protocol, was exploited, with hackers moving $30 million (120,000 Wormhole Ethereum (WeETH) worth of Ethereum. Bitcoin closed the month at a price of $43,760.
On the 23rd of March, the Ronin hack was recorded, and 173,600 ETH and 25,500,000 USDC were raked from the platform and moved to the hacker’s alleged Ethereum address.
Key events that pushed Bitcoin even lower
May was even more hectic for the cryptocurrency market. Key players still maintain that the events from May took a toll on the price of crypto and the broader market.
Terra collapsed in May, along with any plans for its revival. CFTC suing Gemini exchange didn’t help with easing the market FUD. Binance, another highly trusted crypto exchange, was under investigation by the SEC, while the SEC vs Ripple case was still ongoing.
From June to October, 12 events communicated the severity of the bear market. Asides from Coinbase dropping 18 percent of its staff, and Voyager and Celsius filing for bankruptcy, Michael Saylor, a key figure in the market dropped his role at Microstrategy as the market heads for rock bottom.
Along with Saylor, Kraken’s CEO Jesse Powell dropped his role at the company. This came not long after Alameda co-CEO Trabucco resigned in August.
At this time, the market was bearish for all assets, and Bitcoin was sitting at $20,420.
October closed off with the SEC putting Yuga Labs under investigation, and November kicked off with Binance announcing a possible FTX token sale. At this time, sentiments from investors, critics, and even leading players in the cryptocurrency industry reflected uncertainty.
November proceeds to close off with FTX and Blockfi filing for bankruptcy, both moves fueled the sentiments that the Crypto “bubble” had come to an end.
With December recording the arrest of SBF, and him being granted bail after he makes a payment of $250 million, the year is still very unstable for cryptocurrencies like Bitcoin. However, predictions for the new year are bullish to a large extent.