It’s 2022 and bitcoin is not starting the new year off well. The currency – which was recently trading for as much as $51,000 per unit just last week – has fallen to about $47,000 at press time. That’s $4,000 off its price in a rather limited period, and many are wondering if this is an ugly sign of things to come.
Bitcoin Enters 2022 a Little Shaky
Bitcoin is performing worse than it has in the past seven months, according to many analysts. The currency has fallen by more than five percent, and Adrian Kenny – the senior sales trader at digital asset broker Global Block – commented that the currency is failing to hold $50,000 support despite a small breakthrough that occurred at the end of December.
In an interview, Kenny says:
Whilst bitcoin’s overall trading volumes were consistent, a total of 129,800 option contracts [were] set to expire on the 31st of December which is believed to be fueling overall wary sentiment for the short term.
Naeem Aslam – chief market analyst at Ava Trade – commented that the currency’s inability to remain above $50,000 for the time being has got a lot of traders worried. He mentioned:
If the price continues to trade below this mark, we are likely to visit the early 40K price level again.
Thus far, the currency is on track to fall by roughly 17 percent. This is about half the drop incurred by bitcoin last May, as at that time, the world’s number one digital currency by market cap fell by just over 35 percent following news that China was going to begin cracking down on crypto miners.
In addition, the currency also suffered at the hands of Elon Musk, who had decided that after bitcoin could be used to purchase electric vehicles, this maneuver would be rescinded as a means of controlling energy emissions and keeping miners in check.
Peter Schiff – president of Euro Pacific Capital and an admitted skeptic of bitcoin – commented:
With over 16,000 alternative cryptos to choose from, bitcoin’s market dominance is now below 40 percent for the first time since June of 2018. With an unlimited supply of easily created cryptos with virtually identical properties, #Bitcoin is losing its first-mover competitive advantage.
Some Positivity in the Mix
Despite all this, some traders are in the belief that bitcoin could gain about 63 percent over the course of the new year. If this is true, then that would certainly put bitcoin above the $100,000 mark, meaning the digital asset would rise into the six-figure range for the first time in its short, 13-year history.
And while bitcoin is falling now, the currency experienced some wild price rides in 2021, the biggest which occurred last November when it rose to a whopping $68,000 per unit – the highest the asset has ever been.
Source: Live Bitcoin News