bitcoin price, dominoes and bright spots

It has been a tough year for traditional markets, but especially for the crypto market. In this article, we look back at Bitcoin’s price evolution, look at factors that have influenced Bitcoin’s value in 2022, and highlight a number of opportunities for investors.

What did the bitcoin price do in 2022?

In 2021, the crypto market reached its tentative peak; Bitcoin rose to a historic price of $68,789 at the time. But 2022 turned out to be completely different.

Bitcoin started this year at $47,738. After some bear market rallies (short price increases in the context of an overall market decline) the price fell further in February and March.

In the summer, bitcoin reached an important support level of $20,000. This was the peak of the market in 2017. For a moment, the crypto market seemed to stabilize around this point, and the price fluctuated around this level from June to November.

Also read: Support and resistance: how these two basic principles of technical analysis can be applied to bitcoin

Ultimately, the price also fell below this important support point in early November, and since then a new (temporary) equilibrium appears to have been reached around $17,000.

The perfect storm

The price of bitcoin has been affected by a number of important developments in the past year.

First, the worsening macroeconomic picture. The war in Ukraine caused a general cooling of market sentiment. In addition, central banks raised interest rates to curb inflation. This stricter policy has led to risk-averse behavior among investors. This macroeconomic pressure hit the price of bitcoin and other cryptocurrencies very hard.

Second, there were also events within the crypto market that had a major impact on the price of bitcoin. The implosion of Terra (LUNA) in May led to one of the largest capital destructions in history. Due to the interconnectedness of the crypto market, this led to a domino effect which resulted in various financial service providers in the crypto sector such as Celsius, Voyager and also FTX being declared bankrupt.

Also read: Crypto platforms are falling like dominoes, what should you watch out for?

At FTX, founder and former CEO Sam Bankman-Fried, among other things, is accused of fraud and was recently arrested. Among other things, Bankman-Fried must have used customer funds from FTX for huge loans to his private hedge fund Alameda, which invested FTX customers’ assets in high-risk products.

Bright spots and opportunities

But it’s not all doom and gloom. The bottom line is that none of the negative events this year were caused by the underlying blockchain technology itself.

On the contrary, the Bitcoin network never went offline and was always available to anyone around the world who wanted to use decentralized transactions. The second largest crypto project Ethereum has also been upgraded to a proof of effort blockchain. This resulted in a reduction in the grid’s energy consumption of 99.9%.

Also read: 3 reasons why the crypto winter also offers opportunities for investors

The current market also offers a number of opportunities for investors, including a better entry level for, for example, periodic investment. A cryptocrash also washes out the extreme excesses in the market, and now is a good time to look for projects with serious teams and potential. Investors can also quietly delve further into blockchain technology and trading skills such as technical analysis.

In uncertain times, many exit the market and sell their cryptos out of frustration or boredom. But right now is the time to take a long-term view and prepare for the next bull market when it comes.

Secure and personal


“Recent events show how important monitoring and control is for the crypto sector to mature, something we at LiteBit have been advocating for years,” said Arthur van Lier, COO of LiteBit. Crypto as a whole is now under fire due to abuses committed by a limited number of parties. At LiteBit, we are showing in a regulated environment that anyone who wants to invest in crypto can do so safely through a trusted platform.”

Want to start investing in Bitcoin, Ethereum and more than 90 other crypto? It is possible at LiteBit. At LiteBit you can buy, sell, bet and store crypto. Start shopping right here.

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