Of all the cryptocurrencies, Bitcoin had a great start in 2021 at an all-time high of $65000 in April 2021. By mid-2021, it lost 47% of its value, and a number of looming issues could cause more problems for the currency.
After an eminently tumultuous and forgettable week in 2022, not to mention a strange couple of months at the end of 2021, here is what one can expect for the cryptocurrency market. The crypto mining market has suffered a few setbacks. While Bitcoin and Ethereum prices are lower, Bitcoin prices slid lower to an all-time low of $41,856. Ethereum prices fell by 17.7%.
Elsewhere, the crypto market lost over $1960 billion in funding due to huge selling trends at the start of 2022. A mining ban in China and political unrest in Kazakhstan have resulted in more losses for the cryptocurrency sector. A little over a week into the new year, market watchers expect more troubles because of the awaited inflation figures for December 2022. If there is an uptick in inflation, the Feds will likely hike interest rates. This will probably have a negative impact on the cryptocurrency market.
In the near term, Bitcoin prices will have to get back up to the $43500 levels. If this doesn’t happen, the bear market can result in a negative impact. This holds true for all the known performers in the crypto sector, including Ethereum. Market watchers are holding their breath for numbers to see what is likely to happen in the coming week.