2022 was not the best year for digital currencies; its fall was constant and significant, and all forecasts of reaching $100,000 per unit collapsed.
During quite tricky global economic and geopolitical situations, the main affected were cryptocurrencies.
Many users are in the dilemma of whether to sell their digital assets since the floor values they have reached are shallow, touching $16,000.
In terms of valuation, it is the lowest that BTC has reached in a year.
The drastic fall of Bitcoin
Although there are different opinions regarding the drastic fall that Bitcoin and the rest of the cryptocurrencies have had since it has always been thought that the external factors of the traditional economy should benefit the development and performance of these digital currencies rather than harm them.
Analysts and economists who closely follow the performance of cryptocurrencies have determined three reasons Bitcoin has maintained such low values and what has yet to allow its valuation to increase.
First, there needs to be more operation with cryptocurrencies; the primary supply and demand operations have been stagnant, which does not contribute to the normal fluctuation of digital currencies.
Secondly, it is assumed that investors known as whales do not expect to acquire new digital currencies since they have a significant amount and are waiting for Bitcoin’s valuation to skyrocket to open operations.
And thirdly, the need for more interest by existing and new users in acquiring cryptocurrencies and carrying out transactions with them can be considered due to the volatility and risk that they lose money due to the low valuation of these digital assets.
Everyone is waiting for Bitcoin to start climbing new value positions and thus reach all-time highs that will reactivate its operations.
It is assumed that a new bullish stage is approaching since the corrective phase is fully developed; it is known that the bullish periods of cryptocurrencies usually have a duration of around two years.
So this stage is between the years 2020-2022; we have already witnessed the movements of these two years during a pandemic; the incorporation of new users and investors has allowed Bitcoin to climb positions that place it as the leader of cryptocurrencies.
Extremes are not suitable for Bitcoin.
The decline of Bitcoin has been too evident; its value has decreased from almost 65,000 dollars to 16,000, a floor that has caused significant levels of anxiety and anxiety in the digital financial market.
Investor expectations are to exceed the all-time high of 60,000, although, for many, the highest value that bitcoin could reach this year could be 100,000 per Bitcoin; it is a relatively high sum for the drastic drop it has experienced.
After this bearish phase, the Cryptocurrencies will resume their path and begin to generate long-awaited profits.
The market itself has not been accessible, not only for digital currencies but also for financial assets, where those who focus on technology are the most affected.
The economic situation in the United States and the war between Ukraine and Russia have not allowed the expected evolution of the financial market; this has, in turn, caused wear on investors and newbies since they expected a different scenario for the recently completed 2022.
Although many bet on the disappearance of digital currencies, the positioning they have achieved makes it extremely difficult for this situation to arise.
When the upward trend of cryptocurrencies is generated, the potential of cryptocurrencies will be developed to the maximum, which is expected to extend until 2025.
For many, the 100,000 barrier is closer than we think since Bitcoin’s last substantial rise went from just $3,000 to $60,000, something tangible that could be repeated.
The stagnation of Bitcoin is nothing more than a great opportunity where those who own cryptocurrencies must keep them stored, and those who have yet to invest can do so since by acquiring at low prices, the returns at the time of raising prices will be much higher.
It is the expectation of many cryptocurrency holders since the vulnerable position they are currently in after the drastic fall of these digital assets makes them more attentive to any change in trend.