The cryptocurrency market is starting the year in a better way, Bitcoin has reached the $16,500 level. However, with the US indices and the UK stock market closed on January 2nd, the rally may prove short-lived and much will depend on the atmosphere on Wall Street in the coming days.
The volatility of Bitcoin, as well as that of the other major cryptocurrencies, dropped considerably in the last two weeks of December. ‘The King of Cryptocurrencies’ is back around $16,750 on January 2nd, Solana is gaining almost 11% and trading near $11, and Vitalik Buterin’s comment has stopped the downtrend.
Read more about the crypto market and find the most important financial news of the day with the Born2Invest mobile app.
The crypto sector around the world
Australia has displaced El Salvador in terms of installed ATMs, the current number of them is 219 compared to 212 in El Salvador, a country that ranks 4th worldwide in this regard. The place on the podium just above Australia is occupied by Spain, with 225 crypto ATMs, however, in this country the installation of more does not advance at a pace comparable to Australia. The total number of crypto ATMs installed worldwide, cited by some as one of the signs of increasing adoption, is 36,602, of which 6,071 were installed in 2022.
In Nigeria, due to growing interest in cryptocurrencies and the CBC e-Naira, the government’s experimental digital currency, the central bank has imposed a withdrawal limit of $225 per week from ATMs.
In Brazil, a record number of companies, more than 12,000, have reported cryptocurrencies on their balance sheets to tax authorities.
According to CertiK data, cryptocurrency hacking activity in December 2022 fell to yearly lows, stealing a total of $62 million.
The crypto market forecasts
Former CEO of PayPal (PYPL.US), hired as a cryptocurrency specialist at Meta Platforms (META.US), David Marcus now runs a startup processing BTC payments. However, he estimates that the cryptocurrency boom will not continue until well into 2023 or even 2024, with the end not yet on the horizon.
Concerns about the upcoming cycle were also expressed by Coinbase CEO Brian Armstrong, who indicated that it will take longer to improve sentiment towards the market, which drew record attention from scammers and fraudulent entities in the previous bull market.
With Bitcoin’s record correlation to the S&P 500 in 2022, some analysts expect institutions that are risk-averse to potential deeper declines in the index will be forced to remove their exposure to the cryptocurrency market altogether, potentially triggering another cascading sale off even if the domino effect of Luna and FTX ends. The vast majority of funds investing in the cryptocurrency market come from the US.
Map of cryptocurrency market highlights in 2022, showing how the market capitalization has declined from $2.5 trillion in fall 2021 to just $800 billion
Looking at the profit/loss ratio of the last bull market and the previous one, we see a similarity between the two cycles. As in 2018, investors have so far posted losses amounting to almost 50% of the gains made in the bull market. In the 2020-2022 period, the gains and losses have roughly quadrupled from 2017-2019.
In 2021-2022, investors realized losses amounted to more than $213 billion compared to $56 billion in 2018-2019, which is indirectly due to higher market capitalization and record amount of capital that flowed into the cryptocurrency market in 2020. In the Crash of 2018-2019, the market began to turn around, when investors’ realized losses amounted to 47.9%.
Bitcoin volatility is falling back to record levels, which has historically heralded a sharp jump in volatility. It may be helped by the market environment opening the new year as investors and institutions take new positions. The 7-day moving average has approached levels between 22 and 28%.
Futures volumes for the two largest cryptocurrencies, i.e. Bitcoin and Ethereum, hit new lows, illustrating declining sentiment towards the market and declining interest in speculating on digital assets. Source: Glassnode
The amount of BTC held by statistically reluctant long-term investors has again hit all-time highs, confirming the growing interest from investors with a longer investment horizon and possibly heralding a potential supply shock if Bitcoin heads toward the lows. $20,000 in Q1 2023.
Information provided by Vitalik Buterin on Twitter helped Solana recoup some of his losses, the cryptocurrency is gaining almost 12% today as investors are also encouraged by the positive rally in Bitcoin, which is heading towards $17,000 again.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in xtb, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
How Fintech Companies and Banks Complement and Compete with Each Other
In 2022 a survey was conducted in Colombia to determine who asked for credit to a fintech company and more...
Genoa FC Issues 5 Million Bond on Crowdfunding Platform Tifosy
Founded in 1893, Genoa CFC is Italy's oldest club and one of the country's most titled. The Genoa Bond offers...
This Restaurant App Will Hit #1 — Restaurant.com (RDE, Inc. | OTCQB: RSTN) Takes BIG Dining Deals Mobile
Just when you thought the restaurant app roster was complete with the likes of Uber Eats and Groupon, along comes...
What Is the Carbon Footprint of Colombian Palm Oil
In the first study on the palm oil carbon footprint, 27 mills and 11 plantations in the country were included...
The Spanish Pharmaceutical Sector Closes Q3 with an Increase of 10.7%
Reig Jofre is the only one that does not follow the upward trend of the Spanish pharmaceutical sector and closes...
Crypto1 week ago
How Will the Price of Ripple and Cardano Develop in the Next Few Days
Impact Investing2 weeks ago
The European Car Market Could Become Completely Sustainable by 2025, with the Adoption of Smaller EVs
Business5 days ago
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [Esperio Partners Review]
Business2 weeks ago
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [uMobix Affiliate Program Review]