Bitcoin remains stable around $16,900

In recent days it seems as if the Bitcoin price has been put in a stable position. After the collapse of FTX, there was great panic, but it has now completely disappeared and volatility has fallen to an all-time low. The Christmas season was at least as quiet in terms of course and that was probably not bad for a large part of the community.

A year of uncertainty

If we had to describe 2022 in one word, it would probably be something like uncertainty. The sky-high inflation we saw worldwide, the massive interest rate hikes by central banks in response and the resulting misery on the financial markets. It was a poisonous cocktail that probably killed many. In 2021, everyone still had hopes of a Bitcoin price of $ 100,000, but that hope has evaporated fairly quickly this year.

We already started the year with a series of price drops, only to really sink into misery in May after the implosion of the Terra protocol. The collapse of Terra, in combination with the interest rate hikes by the central banks, created a dark mix that eventually left many parties dead. There are those who claim that Terra has also been the domino that led to the fall of FTX.

No more volatility?

If it is up to Edward Moya of Oanda, Bitcoin will probably show little fireworks in 2022. “It looks like Bitcoin has found a home between $16,000 and $17,000,” Moya writes in an email to his readers. Relatively little happens between Christmas and New Year’s Eve and everyone is a bit in holiday mode. On the other hand, with that low liquidity, it is possible to cause large price movements and we often see volatility when no one expects it.

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Ultimately, that is the beauty of Bitcoin and the crypto world. The unexpected movements and the gigantic volatility mean that there is always something to experience in this world. In the meantime, the developers continue to build slowly and, among other things, the Lightning Network is being prepared for mass use. The price may have taken a big hit, but Bitcoin itself is still very much alive.

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