It is clear that 2022 was a terrible year for cryptocurrency and all those associated with it in any way.

You may have held virtual currency to enjoy your favorite gambling games or to invest in the future. However, you are all affected by the news.

2022: A bad year in cryptocurrency

When considering why something could have been bad for cryptocurrency many people will immediately think of its price. Virtual currency’s volatility and high value are two of its greatest assets.

This was evident in the first half, when Bitcoin as well as Ethereum crashed by more than 50% from the highs reached in the last stages of 2021. It has been estimated that $2 trillion in value was lost between the peak of that huge rally and now.

This is why it is easy to see why 2022 was a poor year for cryptocurrency. Its worst quarter in over a decade, as well as the fact that Bitcoin experienced its worst quarter in a decade, has also hurt its cause. According to figures it lost approximately 58% of its value in the second quarter. This was its worst quarter performance since 2011.

The following are reasons for the decline:

• Macroeconomic pressures — The US Federal Reserve was aggressive in its monetary policy
• TerraUSD collapse
• Celsius decided to suspend withdrawals
• Three Arrows Capital was dissolved
• CoinFlex- “Bitcoin Jesus” argument

Is 2023 a better year than 2022 for cryptocurrency?

Many will wonder if next year will bring back the glory days of virtual currency, given all the problems that the industry and cryptocurrency have been through.

The average Bitcoin holder expects the coin to rise to $38,000 by 2023. There is a lot of optimism around Bitcoin holders right now. A survey showed that holders are more optimistic about the possible price levels that could be achieved, with many of them consistently forecasting that it will be greater than they have predicted.

It would be easy to conclude that confidence in the price returning as high as expected is due to the fact that those surveyed hold the coin. They can be considered experts in the field and have more knowledge about the cryptocurrency than others.

As cryptocurrency continues to be discussed, so does the issue of cryptocurrency. With each passing year, more people are accepting of it and its role in the world. This could explain why 2023 could be a good year. Increased interest in cryptocurrency will likely lead to more people learning about it and its functions. This could have a positive effect on the price and availability of Bitcoin and other virtual assets in the future.

Last Thoughts

You probably know something about cryptocurrency. It is likely that you are aware of the fact that digital assets like Bitcoin and Ethereum can fluctuate greatly in price at any rate.

It is clear that 2022 was a disaster for virtual currency. The price of Bitcoin has dropped more than 50%. However, some people still believe that 2023 will be a year to be optimistic about. Many predict that Bitcoin could reach $38,000 by January.