Is Bitcoin really dead in 2022?

Bitcoin has remained popular but its value has significantly fallen off as of late. Now, let’s take a look at the current state of the Bitcoin market and see if the people’s assessment of its life is true or just paranoia.

It is unfortunate that this has happened to Bitcoin as of late. Back in November 2021, Bitcoin was at an all-time high as it reached absurd values like $65,000. While it reached that kind of value earlier in the year due to the support of companies like Tesla and Coinbase, this November high was truly the work of the crypto market. 

Now, when Bitcoin is discussed, you can see that people are not big fans of what is happening with the crypto market because it is not in the best state. Thankfully, some remained loyal to the asset as they see this is now a good time to buy Bitcoin but there are still some issues that they have to deal with. Let’s find out if the notion of Bitcoin dying is legitimate. 

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How is Bitcoin doing right now? 

In mid-2022, Bitcoin’s price has been going down gradually for a long while. This was an unfortunate situation because Bitcoin was at an all-time high. However, that was the peak and the asset has only gone down from there. Now, you can see that Bitcoin and its community are struggling to keep up with the ever-changing financial market. 

As of July 11, 2022, Bitcoin’s market summary is worth around $19,943.50. That is a far cry from what you previously saw during the all-time high of November 2021. Bitcoin’s value has almost been slashed by more than half of its peak value which is a sad development considering that was only a few months ago. With the low value, people are asking when to buy Bitcoin again which has led to them buying the dip.

Bitcoin is on a downwards trajectory

After the peak performance back in November 2021, you can see that Bitcoin has underwhelmed. Its future projections have been horrendous as of late because this hole that it is currently in will be hard to get out from. This kind of trajectory is a sad development for Bitcoin because people were excited to see it reach such a high-value last year but now, you can see that people are becoming hesitant about investing.

Thankfully, there are still many companies that trust Bitcoin as a legitimate asset. You can see that a huge entity like the National Basketball Association (NBA) has multiple teams sponsored by crypto-based companies. The Los Angeles Lakers are arguably the biggest sports team in North America and they are sponsored by a crypto exchange called Crypto.com which is also the namesake of their arena. 

Bitcoin’s value might get lower

With what has happened with Bitcoin’s value over the past few months, experts have said that it can get lower soon which has led to some people believing that the Bitcoin dream is dead when it is not. In the long-term future, most experts will agree that Bitcoin will improve because that tends to happen in the crypto market. 

An expert named Ian Harnett talked about how Bitcoin’s value will get even lower nowadays. He said, ‘We would still be selling these kinds of cryptocurrencies into this environment. It really is a liquidity play. What we’ve found is that it's neither a currency, nor a commodity and certainly not a store of value… In a world where liquidity is plentiful, the bitcoins of this world do well. When that liquidity is taken away — and that’s what the central banks are doing at the moment—then you see those markets come under extreme pressure’.

This might be the best day to buy Bitcoin because the dip is a good time to capitalise on the lower value and then sell it when it’s high again. That is why people always ask ‘will Bitcoin dip again?’ because they want to buy and then eventually sell high. 

The crypto market has deteriorated

Bitcoin has had a large impact on the rest of the industry because it dictates how the overall price can look like. That can be seen with how the crypto market value has gone down or up depending on what happened with Bitcoin too. With Bitcoin’s value going down, other assets have crashed as well which has affected the rest of the cryptocurrencies in the space.

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Global stocks have fallen in 2022

As time has progressed, more people have agreed that stocks and the crypto market have become correlated. The financial markets have struggled in 2022 which has led to many struggles around the world in many industries. You can see that stocks have gone down as well which has led to a downward trend to Bitcoin and the rest of the crypto market. 

The crypto market has been affected

You can tell that the crypto market has been affected by these changes. It is pretty clear that the crypto market has gone down as of late because of the number of significant shifts that we have seen in the stock market as well. When you check out the growth with the crypto market in 2021, you can see that the stocks were up which has led to the growth of the crypto industry too. Now, you can see that the future of Bitcoin might be in jeopardy but the long-term future will be better. According to the experts, people do not need to worry about when is the best time to buy Bitcoin in the long run because the price will be low for a while. 

Negative stories have pushed Bitcoin’s price down

Apart from the conflict in Eastern Europe, you can see that other events have had a huge impact on Bitcoin’s price decrease. External factors are important to any financial market but Bitcoin and the rest of the crypto market are probably the most vulnerable to this kind of damage. Some negative stories have had a big impact on the crypto industry and these are just some of the recent events that negatively affected their timeline for buying Bitcoin.

Biggest stories

As one of the biggest stories of the year, you have probably heard of what has happened in Eastern Europe with Russia and Ukraine. This has led to the possible ban of cryptocurrency operations because Russia has struggled to deal with their financial market’s crash and crypto has been the biggest asset which has led to the value tanking in other parts of the world. 

In June 2022, Binance paused Bitcoin withdrawals which was a huge event for the crypto market because having a backlog of transactions is not a good idea for arguably the biggest exchange in the industry. 

Back in May 2021, Elon Musk said that Tesla would pause their Bitcoin transactions which hurt the asset’s reputation. A huge company like that would want to use Bitcoin but then denying its use was significant because some people lost trust in the asset.

Those are just some of the events that happened around the world that affected Bitcoin’s value. However, some people are still looking for a good time to buy Bitcoin because they believe that if the value is lower now and cashing out in the future will be a good move.

Bitcoin will keep being volatile

As long as the crypto market is active, Bitcoin will keep being volatile. Occurrences such as price decrease is normal in the crypto market which has led to people learning how to know when to buy Bitcoin by looking at trends. Apart from the price drop, you should also watch out for other events such as the Bitcoin halving that takes place every four years whereas the supply gets limited but the price spikes up really high.

Moving forward, you should expect that Bitcoin will keep improving because price drops don't last forever. Do not be afraid to invest in the crypto market again because it will pay off for you in the long run as long as you do not fold.

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Words: Pocholo Magsino