Kategorie: Bitcoin News

Key Takeaways

• Cryptocurrency industry was valued close to $3 trillion entering 2022, now it is $800 billion 
• There are 73% less Bitcoin millionaires after 2022
• Bitcoin has pulled back 75% from its all-time high fo close to $69,000
• 25% of the bitcoin supply was in a loss entering the year, now it is over 50%
• Number of investors holding greater than 1 BTC jumped 20% as the hurdle became much more attainable

    

Once upon a time, the cryptocurrency market was valued at $3 trillion. To be precise, this was in November 2021, when Bitcoin traded at its all-time high of close to $69,000.

But then along came 2022. Inflation sparked as a result of the COVID money printing, war in Ukraine and supply chain issues, meaning central banks worldwide were forced to hike rates to curtail a spiralling cost-of-living crisis.

With the cheap liquidity pulled out from under markets, Bitcoin – and crypto as a whole – felt the pinch. We have seen top 10 cryptocurrencies collapse, one of the top exchanges revealed to be a house of cards and numerous other bankruptcies and scandals. 

The loss has been greater than $2 trillion, with Bitcoin shedding three-quarters of its value as at the time of writing, trading at $16,800.

Bitcoin millionaires

Looking at on-chain data from bitinfocharts.com, Bitcoin millionaires have dropped like flies. Entering 2022, there were 90,000 addresses containing over a million dollars worth of Bitcoin. Today, it is 24,000 – that amounts to a fall of 73%.

“The on-chain data sums up what is glaringly obvious from looking at a Bitcoin price chart – that the party is over and investors are no longer dreaming of retirement off their Bitcoin holdings, in the near future at least! Nearly three-quarters of Bitcoin millionaires losing that status is perhaps the best piece of data of all to summarise how ugly 2022 was for investors” said Max Coupland, Director at CoinJournal. 

Percent in supply in loss doubles in 2022

Bitcoin’s returns before 2022 were astonishing. As a result, the bulk of the supply was in profit, with only 25% of the supply loss-making entering the year. By year-end, this had doubled to over 50% – another stunning statistic when considering that Bitcoin was the best-performing asset class in the world over the prior decade. 

Addresses holding greater than 1 BTC

On the flipside, with Bitcoin being so cheap compared to last year, the number of addresses containing one Bitcoin or greater – “whole coiners”, as they are known – is at all-time high, even if the dollar value contained in those addresses is way down. 

Entering 2022, there were over 814,000 addresses holding more than 1 BTC. By the end of the year, this number was over 978,000 – that is a rise of 20%.

As can be seen when zooming in on 2022 on the below chart, there were significant jumps when Bitcoin plunged off the back of the three major scandals of 2022 – Luna’s death spiral, Celsius’ insolvency and the revelations of fraud at FTX. 

Dropping sentiment matching falling prices

Perhaps the biggest problem emerging from 2022 is related to these scandals. The reputation of crypto has taken a hammer blow, most notably with the shocking downfall of FTX and disgraced former CEO Sam Bankman-Fried. 

According to a CNBC survey as of November 2022, only 8% of Americans now have a positive view of cryptocurrency. 

Crypto investors have seen similar percentage declines before, of course, only for the market to bounce back. But this time, crypto is fighting against a pullback in the wider economy for the first time in its history. 

Until now, it had been zero (or negative) interest rates and a warm money printer. Now, we have transitioned to a new environment, and crypto investors are feeling the pain. They will hope that 2023 can bring a return to prominence and start mending the reputation of the wounded asset class. 

If you use our data, then we would appreciate a link back to https://coinjournal.net. Crediting our work with a link helps us to keep providing you with data analysis research. 

Research Methodology

Address data taken from on-chain. Price data from Yahoo Finance. 

The post 73% less Bitcoin millionaires than a year ago, as crypto losses top $2 trillion in torrid 2022 appeared first on CoinJournal.

Key Takeaways

• Bitcoin has closed the year down 64%, its worst year since 2018
• This bear market is different, as for the first time ever in Bitcoin’s existence, the wider economy is also pulling back
• Bitcoin’s correlation with the stock market is extremely high, proving it trades like a high-risk asset
• Fans will hope this link can be broken, but currently, it presents as a daunting macro climate for Bitcoin and one that has unsurprisingly crushed its price over the last year

Cryptocurrency investors will be happy to close the book on a dire 2022. 

Prices across the asset class collapsed, as the world transitioned into a new interest rate paradigm, with the era of low-interest rate, cheap money officially over. Risk assets got crushed, and there are few investments further out on the risk spectrum than crypto. 

Looking at Bitcoin, the world’s flagship cryptocurrency closed the year at $16,547, compared to the $46,311 it entered the year at. That translates to a fall of 64%. But how bad was the is performance historically, for an asset which is notorious for both explosive gains and bone-chilling losses?

2022 the second-worst year for Bitcoin

Looking at annual returns since 2011, the first year when sufficient liquidity and price data were available, shows that Bitcoin’s 64% drop this year was its second-worst number, behind only the 72% drop in 2018. The latter came after a run-up towards $20,000 in late 2017, the first time Bitcoin truly entered mainstream consciousness. 

Amid this context, the numbers show that 2022 could just be another year, right? Bitcoin has fallen many a time previously, and always rebounded. Unfortunately, there is a catch this time.

Bitcoin experiencing a recession for first time ever

Satoshi Nakamoto published the Bitcoin whitepaper in 2008, I the aftermath of the Great Financial Crisis. Engrained in the Genesis Block is a reference to British newspaper the Times: “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.” 

Frist trading in 2009, Bitcoin was therefore propelled into this post-crisis environment, a climate of zero (or even negative) interest rates, a warm money printer and explosive returns in risk assets. A quick look at stock market returns since Bitcoin’s launch shows that, until this year, things had been plain sailing.

And so for the first time in its history, Bitcoin is experiencing a pullback in the wider economy. The money printer has been turned off and interest rates have been hiked, with the Federal Fund rate now 4.25% – 4.5%.

This is vitally important because despite what some Bitcoin evangelicals may argue, Bitcoin trades as a high-risk asset. The price data simply proves this without a shadow of a doubt, as its correlation with the S&P 500 is sky high – and only rose last year after interest rates began to be hiked in April 2022, as I wrote about in this piece, and shown on the graph below.

Previous bear markets are not the same

This is why extrapolation of prior bear market bouncebacks for Bitcoin is naïve. The world is a different place now than at any other time in Bitcoin’s history. The free money up-only market could not persist forever, and now it is time for Bitcoin to show the world what it is made of. 

Bitcoin is often compared to gold, but the shiny metal has proven over a long sample space that it can be considered a hedge and a reputable store of value through which investors can preserve their wealth. Plotting the returns of gold historically below show clearly that it rises in times of uncertainty. This is the kind of chart that you want to see as we enter a recession. 

Unfortunately, Bitcoin has to date traded with an uber-high correlation with the stock market. In time, advocates hope that this link will be broken. That is up for debate, but what is for sure right now is that Bitcoin is as far from a “hedge” as it could possibly be. 

If the Federal Reserve turns dovish and eases off on interest rate hikes, you can be sure that asset prices will jump again – and those further out on the risk spectrum, like tech stocks and Bitcoin, will be among the big winners. 

In the long-term, the trillion-dollar question is whether this correlation can be broken and whether Bitcoin can achieve the coveted store of value status. 

The post Will Bitcoin bounce back? Why 2022’s pain is different to anything previously appeared first on CoinJournal.

• Jasmy price has jumped in the past four days.

• It has jumped by more than 40% from the lowest point in 2022.

Jasmy price has had one of the best performances in 2022 as investors bought the dip in Japan’s Bitcoin. It has risen in the past five straight days and moved to the highest level since December 11. These gains represent about a 40% increase from the lowest level in 2022, giving it a market cap of over $100 million. 

Why is Jasmy soaring?

Jasmy is a relatively small blockchain project that has become popular in Japan. The platform was started by a team of former executives at Sony, one of the leading entertainment companies in the world. The platform was created to provide decentralized data storage solutions to companies and individuals. 

The creators recognized the importance that data plays in the world today. Indeed, we have seen multi-billion dollar companies like Google and Meta Platforms that make money from selling data to advertisers. Data privacy has also become an important part of the word debate today. 

Jasmy plays an important part in the democratization of data by combining blockchain and Internet of Things to provide an infrastructure that allows anyone to use data safely and securely. Users can store and control their data, manage and control devices, and provide a safe place to use data in a secure manner. 

Jasmy’s platform is made possible by a number of popular technologies. Some of the top components of its technology are the Personal Data Locker, which enables data storage within a peer-to-peer network. It also has a secure knowledge communicator which allows data democratization and smart guardian that allows the registration of devices. 

It is unclear why Jasmy coin price has done well in the past few days. A likely reason is that the developers are about to make a major announcement such as a partnership with a major company. There is speculation that the network will soon partner with Sony. 

Jasmy price prediction 

JASMY chart by TradingView

The daily chart shows that Jasmy price has been in a strong bullish trend in the past few days. It has risen in the past fou straight days and managed to move above the 25-day and 50-day moving averages. The Relative Strength Index (RSI) has moved slightly below the overbought level. 

Therefore, as I wrote elsewhere, I suspect that Jasmy will retreat in the coming days as the short squeeze fades. Also, it will decline as some of the current buyers move into a distribution phase. If this happens, the next key level to watch will be at $0.0032.

How to buy Jasmy

Coinbase

Coinbase is a global cryptocurrency exchange. Its platform is well designed for beginner investors and it offers a wide range of coins, as it has over 100 to choose from. Coinbase has high level security built into the platform, a range of diverse features to use and it offers its users options for storing their crypto, such as being able to store coins on the Coinbase exchange.

Buy JASMY with Coinbase today Disclaimer

KuCoin

Kucoin is a cryptocurrency exchange which offers over 200 cryptocurrencies. Kucoin has a wide range of services, such as; a built-in peer-to-peer exchange, spot and margin trading, bank level security and a wide range of accepted payment methods. Users can benefit from a beginner-friendly interface and relatively low fees.

Buy JASMY with KuCoin today

The post Jasmy price prediction as Japan’s Bitcoin surges appeared first on CoinJournal.