Bitcoin on track for worst year since 2018

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Bitcoin (BTC-USD) is on track to end the year down around 65%, capping off one of its toughest years since inception. The major cryptocurrency is expected to end the last week of the year down 1.3%.

The 65% decline is in stark contrast to a gain of around 60% in 2021 and a fourfold increase in 2020. In 2018, bitcoin (BTC-USD) was down around 74%.

2022 has seen the crypto market collapse under the weight of multiple bankruptcies, including the FTX (FTT-USD) crash, as well as low risk appetite as the Federal Reserve’s aggressive rate hikes spooked investors, who widely expect a recession next year.

“We still expect (bitcoin) volatility to decline and remain cautious,” said Anthony DeMartino, CEO of Matrixport US. He noted that the collapse of crypto-related businesses this year “exposed all the inconsistencies that we may have noticed but didn’t want to confront.”

“Best practices will need to be adhered to, as a shortfall will reduce access to finance and capital. This strict new environment will allow the next stage of growth to occur on a more solid and risk-aware basis,” added DeMartino.

The crypto market capitalization currently stands at $795.22 billion, down 0.04% from Thursday, according to CoinMarketCap.

FTX Developments

Former FTX CEO Sam Bankman-Fried is expected to appear next week on criminal charges of fraud and misuse of client funds. SBF revealed that he and FTX co-founder Gary Wang borrowed more than $546 million from Alameda Research to buy a 7.6% stake in Robinhood (HOOD). The SEC alleged that the venture capital arm of FTX made two $100 million investments using client money in companies whose names were not disclosed. Bahamian securities regulator seized FTX digital assets valued at over $3.5 billion as it “determined there was a significant risk of imminent dissipation” if they remained under FTX’s control . Meanwhile, FTX Japan and Liquid Japan are targeting the resumption of withdrawals in February.

Other Crypto News

Argo Blockchain (ARBK) has announced that it will sell its Helios mining facility to Galaxy Digital (OTCPK:BRPHF) for $65 million. “The lower leverage should provide some relief. However, going forward, ARBK will be subject to hosting fees for its miners at Helios, which will be operated by Galaxy,” the Jefferies analyst said. Jonathan Peterson. Crypto exchange Kraken will cease operations in Japan from January 31 due to market conditions in the country and the global crypto downturn.

bitcoin price

Bitcoin (BTC-USD) fell 0.2% to $16.59,000 as of 6:07 p.m. ET, while ether (ETH-USD) was flat at $1.20,000.

Bitcoin (BTC-USD) remained firmly below $16,000 this week. SA contributor The Digital Trend thinks bitcoin (BTC-USD) could bottom in the first half of 2023 and rally in the second half. “However, that doesn’t mean we’ll immediately take off to new highs. More likely, we’ll see ‘sideways’ action for the second half of the year.”

Crypto-related stocks that ended in the red on Friday include: MGT Capital Investments (OTCQB:MGTI) -4.6%, Soluna (SLNH) -3%, Riot Blockchain (RIOT) -0.9%. However, crypto mining stocks ended higher: Cipher Mining (CIFR) +24.8%, Argo (ARBK) +19.5%, Iris Energy (IREN) +13.6%, Bitfarms (BITF) + 10.9%.

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