re Bitcoin goes, other tokens follow. In 2022, they all entered the crypto winter. Other than that, last year will be remembered for the collapse of one of the biggest largest crypto exchangesthe passing of some big projects from mining to staking and pressure from regulatory authorities. But let’s see how Bitcoin made it through 2022.

Short answer: not well. BTC Market Cap on January 1, 2022 totaled $902.10 billion, while on the same day of 2023 it became $319.24 billion. If Bitcoin were to post its year-end results on Instagram like many of us do, one would have to admit that it is down 64% from the peak. Since hitting an all-time high in November 2021, BTC has been on a wild ride through 2022, and the coin ended the year with a value of over $15,000.

Market capitalization of Bitcoin in 2022

One of the main drivers of the decline appeared at the very beginning of the year with the arrival of the new policy of the American Federal Reserve. On January 6, Bitcoin hit a local low of $42,500, taking the rest of the market with it. But that was just the beginning – further Fed decisions sent BTC well below $18,000.

Another anti-record of the year was set in June, when miner cash flows fell 80% from their peak – to levels two years ago. In the same month, public companies in the sector for the first time sold more cryptocurrency than they mined. Followed by several high profile bankruptcies, it undermined investor confidence in crypto, leading to – guess what? – yes, more decline.

Although crypto haters (as usual) are predicting Bitcoin’s downfall, there is room for hope. Like the planned halving – when every four years the reward for mining Bitcoin is halved. As we can see from historical data, this process increases the value of BTC: there are fewer coins left and potential miners give up. The next halving is expected in the spring of 2024. But before that, prepare for a rally. However, after 2022 we might reconsider what we call a rally. The year has once again proven that BTC is stable enough to survive turbulent events globally and will undoubtedly remain the biggest contributor to the total crypto market cap.

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