It is now almost Christmas and unless a miracle happens, both the exchanges and Bitcoin will end much lower than they started the year. It doesn’t seem like there will be a Christmas rally this year. Investors hope that the end of the year will come soon and are really only asking one question: will next year be better or will we get more of the same?
Boom and bust
In january, we saw the most popular cryptocurrency, Bitcoin, trading for a value of $50,000. By now, we’d be happy if its hits $20.00 any time soon. Of course, this is not the first time we have seen a ‘boom and bust’ period in crypto.
Let’s just think back to 2017-2018. Back then Bitcoin rose to $20,000 for the first time and lost some 80% of its value the following year. Everyone predicted the end of crypto back then, but thanks to the Covid pandemic, cheap loans and lockdowns, people started trading speculative investments again and at the end of 2020 we saw Bitcoin trading for $20,000 once more.
The whole world went wild when Tesla CEO Elon Musk shouted on Saturday Night Live in April 2021 that Dogecoin would go ‘to the moon’. The peak of the crypto market was reached in November of 2021 and Bitcoin hit an all time high of $69,000.
Rumors
One year on and it seems that a lot of promising crypto companies have gone bankrupt. It started in April with Terra Luna and ended in November with FTX. Meanwhile, questions are swirling about Binance and Bitvavo, but these seem more like media rumors than credible issues at this point.
So what will it be next year? Has the bottom been reached or are we gonna see Bitcoin trade even lower? Well if you ask me, after this year of ‘bust’ it might be time for some ‘boom’ again. But let’s not immediately shout ‘to the moon’ of course. And also any repeat of those ‘lasereyes‘ seem like a bad idea. 2023 can’t start soon enough.