The first quarter of 2022 has not been very festive for bitcoin (BTC) and the second quarter has not been a great period for the price so far. Despite that, the decline is not that bad for some analysts. We have lost just over 50 percent from the top, while bitcoin has lost up to 80 percent of its value in previous bear markets. So there is a chance that we will sink further, but also a possibility that this bear market will not be too bad. In addition, we must not forget that the macroeconomic environment is also not in favor of bitcoin. Inflation is high and that puts pressure on central banks to raise interest rates, which is bad for the financial markets.
1. Bitcoin takes it easy
Despite the so far mediocre first half of 2022, the bitcoin price is still doing quite reasonably. Many analysts had expected that bitcoin would have a hard time with the new policy of the US Federal Reserve. In order to fight inflation, the main central bank in the world is pursuing a relatively strict interest rate policy, which is putting pressure on all markets worldwide. However, at the time of writing, bitcoin appears to be stabilizing around $30,000 and everyone feels like the worst is over. What we have learned after a few years, however, is that the bitcoin price, especially in the short term, cannot be predicted.
2. Less than $50,000 in 2022
We are approaching the end of May and the $50,000 mark is still not in sight for bitcoin. We’ve come close with $47,000, but the psychological barrier of $50,000 has not yet been reached. The last time bitcoin was at $50,000 was on December 25, 2021.
3. 2022 comparable to 2021
Bitcoin gained a new one twice in 2021 all time high, the last of which was in November. At the time, the price shot up to $ 69,000 and then started the way down again. However, the second quarter of 2021 was anything but a party and in that sense it is quite similar to 2022. If 2022 becomes a repeat of 2021, then we may still have a lot of racing joy in store.