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Without sugar-coating words, 2022 has not been the year for crypto. The first four out of the last five years from 2017-2021 saw crypto become more mainstream and the market was super bullish.
In November 2021, Bitcoin hit north of $68,000 – the highest value of any crypto yet and the future looked brighter than ever.
Then 2022 came and it’s been all bears since. As of the time of this writing, 1 BTC = $16,602.
But crypto enthusiasts and investors are still hopeful. Indeed, over the past three Christmases, major cryptocurrencies like Bitcoin and Ethereum have had significant price spikes towards the end of the year.
So, will Christmas 2022 bring crypto good tidings? BingX discusses how crypto has performed in the last three years, whether we should expect a bull run this Xmas, significant factors that tilted the odds in favour of the bear, and what the future holds.
In this piece, we’ll be considering the performance of Bitcoin, the most popular cryptocurrency, over the last three Christmases.
On Christmas Day 2019, Bitcoin sat around $7,000 and had been consolidating for months. After a brief rally to $10,000 in February and a liquidity grab in March, Bitcoin began a solid 1-year bullish run until it hit its all-time high of $63,000 in April 2021.
On Christmas Day, 2020, BTC was in the midst of a strong bullish run that had been ongoing since the beginning of the year and hit an all-day-high of $24,700. Bitcoin continued its bullish momentum until its first $60,000+ all-time high in April.
2021 was the best year for Bitcoin and crypto yet. BTC hadn’t broken the $29,000 support since the 2020 bull run. On December 25, 2021, BTC hit an all-day-high of $50,000, albeit from its $68,000 all-time-high and had broken the previous week’s high just a few days before.
Particular events in 2022 were major triggers for the crypto winter and continued to tilt the odds in favour of the bear. Some of them were:
Earlier in 2022, the algorithmic stablecoin TerraUSD and its sister coin Terra (LUNA) crashed, causing over $40 billion in losses. The aftereffects of the crash caused a general bearish sentiment that the market was still trying to recover from and then came…
In November 2022 came the FTX crash. FTX, one of the largest crypto exchanges in the world along with its sister company Alameda Research, filed for bankruptcy. This was one of the biggest blows to crypto in the year yet and over $8 billion in user funds were lost.
Since the invasion of Ukraine by Russia earlier in 2022, cryptocurrencies have experienced increased volatility plus investors are saying major cryptocurrencies like Bitcoin and Ethereum are tracking the stock market. In effect, meaning the overall global uncertainty is having a bad effect on crypto.
No one can say for sure but 2022 has not been very great for crypto. Some experts, however, believe that major coins should experience significant bull runs this Christmas season and are confident in crypto overall despite the crypto winter:
BTC has been consolidating over the past month and only recently rallied above November 10’s high of $17,000.
Research has shown that crypto usually performs well toward the end of the year but what exactly causes this? Some theories include:
The holidays are usually when most members of families are together. Over Christmas dinners and discussions, experts believe that talks on personal finance and crypto come up. People don’t want to miss out on the next big thing and crypto has been that over the last decade.
Almost everyone makes New Year resolutions every January 1st and experts believe that while people are looking to try new things and have a better year, many newbies finally decide to take the leap into crypto.
As more people begin to use crypto and these tokens become more mainstream, crypto and crypto-themed items are starting to feature in holiday season gifts. Giving major cryptocurrencies as gifts, in particular, has been around for a while and with exchange platforms allowing users to trade their crypto directly for cash, it makes sense that crypto experiences a boost in the holiday season.
The market shocks this year brought an abrupt shift in market conditions and ill to the overall positive sentiment that crypto had been building over the last few years.
However, many experts are still confident in crypto and how it’s the money of the future – and that bad market conditions are part of every asset’s life cycle.
Still, cryptocurrencies are highly volatile and risky assets so trade them with caution and with a well-thought-out trading strategy in place.
BingX makes trading your favourite crypto assets easy – even if you’re a new trader.
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