• Bitcoin is set to close out 2022 with a 65% yearly drop in USD price action.
• The asset’s price tumbled amid macroeconomic hurdles, industry collapses and scams.
• BTC slipped to a new 10-day low of way below $16,500 yesterday.
As the year 2022 draws to a close, Bitcoin is set to end the year with a 65% drop in USD price action. This year has been a particularly difficult one for the asset, with its price tumbling amid a slew of macroeconomic hurdles, industry collapses and scams. Even on the micro scale, BTC has been performing poorly, slipping to a new 10-day low of way below $16,500 yesterday.
The year began on a rather positive note, with Bitcoin having established an all-time high of $69,000 in the previous year. Many were expecting the asset to double down and keep charting new peaks, with the $100,000 milestone being the next one to watch out for. Unfortunately, the asset was unable to sustain the upward momentum, and its price began to slowly descend.
The initial drop was largely attributed to the US government’s decision to increase the capital gains tax from 20% to 39.6%. This severely hindered investment activity, with many traders deciding to hold off their investments for the time being. Furthermore, the asset was hit by a series of industry collapses and scams, such as the now-infamous QuadrigaCX scandal.
The situation was further exacerbated by the global macroeconomic environment. Lockdowns, restrictions, and the overall economic uncertainty caused by the pandemic caused investors to become wary, and the asset’s price began to dip further.
The situation has been bleak throughout the year and the asset has been unable to make any significant gains. This has been reflected in the BTC/USD chart, with the pair showing a steady downward trend. This has been especially evident in the last few weeks, as the pair fell below the $17,000 mark.
It remains to be seen whether the asset will be able to make a strong recovery in the coming year. The current macroeconomic environment remains uncertain and the industry is still plagued by a number of scams and collapses. However, if the asset is able to make a strong comeback, then 2022 could be remembered as a year of growth and progress.