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Bitcoin (BTC-USD) is on track to end the year ~65% lower, crowning one of the most challenging years since its inception. The top cryptocurrency is set to end in the last week of the year 1.3% lower.
That 65% drops contrasts strongly with ~60% Win in 2021 and a whopping quadruple Increase in 2020. In 2018 Bitcoin (BTC USD) had declined ~74%.
In 2022, the crypto market collapsed under the weight of several bankruptcies, including the FTX (FTT-USD) crash, along with weak risk appetite as the Federal Reserve’s aggressive rate hikes spooked investors broadly anticipating a recession next year.
“We continue to expect (bitcoin) volatility to decrease and remain cautious,” said Matrixport US CEO Anthony DeMartino. He noted that this year’s collapse of crypto-related firms “exposed all the inconsistencies that we might have noticed but didn’t want to face.”
“Best practices must be followed as failure will limit access to funding and capital. This new, severe environment will allow the next phase of growth to occur on a more solid and risk-aware footing,” added DeMartino.
The crypto market cap currently stands at $795.22 billion, down 0.04% via Thursday, according to CoinMarketCap.
FTX developments
- Former FTX CEO Sam Bankman-Fried will reportedly face charges of fraud and misuse of client funds next week. SBF announced that he and FTX co-founder Gary Wang collectively borrowed over $546 million from Alameda Research to buy a 7.6% stake in Robinhood (HOOD).
- The SEC claimed that FTX’s venture arm made two $100 million investments with client funds to companies whose names were not disclosed.
- The Bahamian Securities Commission seized more than $3.5 billion worth of FTX digital assets
- Meanwhile, FTX Japan and Liquid Japan are aiming to resume withdrawals in February.
Other Crypto News
- Argo Blockchain (ARBK) announced that it will sell its Helios mining rig to Galaxy Digital (OTCPK:BRPHF) for $65 million. “The lower debt burden should provide some relief. Going forward, however, ARBK will pay hosting fees for its miners at Helios, which is operated by Galaxy,” said Jonathan Petersen, an analyst at Jefferies.
- Crypto exchange Kraken will cease operations in Japan effective January 31 due to market conditions in the country and the global crypto downturn.
bitcoin price
Bitcoin (BTC-USD) has fallen 0.2% at $16.59k at 18:07 ET, while Ether (ETH-USD) was flat at $1.20k.
Bitcoin (BTC-USD) remained firm below $16,000 this week. SA contributor The Digital Trend believes Bitcoin (BTC-USD) could find a bottom in the first half of 2023 and surge in the second half. “However, that doesn’t mean we’ll take off towards new highs immediately. More likely, we’ll see some sideways movement in the second half of the year.”
Crypto-related stocks that ended lower on Friday include: MGT Capital Investments (OTCQB:MGTI) -4.6%to the left (SLNH) -3%Riot Blockchain (RIOT) -0.9%. However, Crypto Mining Stocks Closed Higher: Cipher Mining (CIFR) +24.8%Argo (ARBK) +19.5%Iris Energy (IREN) +13.6%Bit farms (BITF) +10.9%.
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