This year has been a crazy ride for cryptocurrencies. The price of bitcoin dropped by 70% this month. Here is the crypto market overview for 2022.
Even though cryptocurrencies and the enabling disruptive technology have been around for more than ten years, they still make up a relatively modest portion of the financial industry. The overall market value of cryptocurrencies was $1.1 trillion as of August 2022 (down from its all-time high of $3 trillion), or around 2.5% of the value of the U.S. equity market. However, experts think that blockchain technology and digital currency are here to stay.
Understanding the crypto market overview and how they relate to conventional financial assets remains difficult. Traders are still split on whether these products behave like currencies, commodities, or financial securities or whether they are something else, like artificial financial products supported by cutting-edge technology and algorithmic trading protocols. But the consensus among all market participants is that the cryptocurrency market is volatile.
Investors were hailing bitcoin as the future of money and Ethereum as the most significant development tool in the world a year ago this week. Coinbase was trading at a record, non-fungible tokens were surging, and the Miami Heat had just begun their inaugural season in the NBA’s rebranded FTX Arena. That was the peak of cryptocurrency, it turns out.
The two biggest digital currencies have lost three-quarters of their value in the year since bitcoin peaked at almost $68,000, plunging alongside the riskiest tech companies. Previously valued at almost $3 trillion, the industry today has a $900 billion market cap.
The cryptocurrency market has kept traders and investors perplexed with its unexpected movements with only one month left before the year ends, but everything might change in December 2022.
November Crypto Market Overview 2022
The global crypto market underwent significant shifts in November, and the FTX plunge left both skeptics and enthusiasts uncertain about the sector’s future.
Despite declining to as low as $730 billion, the global crypto market overview value was able to slightly rebound from its multi-month lows reached in November. The majority of altcoins, including Bitcoin (BTC), Ethereum (ETH), and others, experienced price declines over the past month as the FTX mystery caused concern among cryptocurrency owners.
Investors have been tempted to return to the market, though, by the promise of quick profits. Advocates for the cryptocurrency industry thought that prices this low represented a Black Friday Discount for BTC and other cryptocurrencies.
Analysts’ projections of a promising future were consistently challenged by increased market volatility and abrupt price changes. Additionally, while participants conjectured about the fate of FTX creator Sam Bankman-Fried, regulatory concerns hung over the entire world of cryptocurrencies.
December Crypto Market Overview Prediction
Many observers believed that Bitcoin’s price had bottomed even though it had touched the multi-month low of roughly $15,000 and was still in a bigger downward trend. The price of Bitcoin, according to a CryptoQuant expert, wouldn’t drop below $15,000. It means that the crypto market overview for December would finally be better than the rest of the year. It indicates that the December crypto market overview will eventually be better than the rest of the year.
The expert argued that the price of bitcoin was about to bottom out and that a BTC dead cross was imminent. The analysts’ hypothesis states that the price of Bitcoin will significantly increase when the short-term dominance of the Bitcoin UTXO falls below long-term dominance.
The expert said a dead cross was imminent and that the price of bitcoin has most likely found its bottom based on the Bitcoin UTXO Age Bands.
On Twitter, a different analyst going by the handle CryptoKaleo predicted that the price of LTC could experience some explosive movements before the year is out. The analyst stated that a strong pump appeared to be overdue for the LTC/BTC chart.
The analyst added that LTC’s pricing functions in a way that causes it to decline sideways gradually over an extended period. The global crypto market then experiences a brief spike up to 0.02 BTC while remaining bearish.
Alright, starting to believe this is the real deal for $LTC / $BTC.— K A L E O (@CryptoKaleo) November 23, 2022
It's long overdue for a solid pump.
Here's how Litecoin works – long periods of slowly bleeding down sideways, followed by a quick pump up to .02 BTC or so when everything else is bearish. pic.twitter.com/OV9w45ml6H
RektCapital analyst issued a warning regarding altcoins to cryptocurrency traders. Many altcoins, he claimed, looked to be converting previous supports into new resistances. RektCapital noted that it’s best to exercise caution until altcoins can regain their recently dropped levels.
Many Altcoins appear to be potentially turning old broken down supports into new resistances— Rekt Capital (@rektcapital) November 24, 2022
Until Altcoins are able to reclaim these recently lost levels, it's better to be cautious#BTC #Crypto #Bitcoin
Sam Bankman-Fried from FTX: Will He Go To Prison?
Sam Bankman-Fried (SBF) and his defunct exchange FTX were one problem that gripped the globe’s crypto market overview, causing more significant market sell-offs. SBF and FTX have an impact on traditional finance enthusiasts’ perceptions of the crypto market in addition to the overall value of the cryptocurrency industry.
The likelihood of SBF going to jail was discussed by the mainstream media as suspicion about cryptocurrencies was raised once more. According to a Fortune report, SBF might avoid jail time because FTX is an offshore company with its headquarters in the Bahamas.
Defense attorneys could contend that because FTX didn’t target Americans, the actions of its executives were out of the country’s purview, and therefore outside the purview of the U.S. DOJ and U.S. SEC.
Another attorney asserted that SBF’s actions and FTX’s business procedures showed evidence of fraud; as a result, SBF might spend some time in jail. However, it seems like FTX chief SBF could face very serious consequences, though time in jail is unlikely when considering Do Kwon and the Terra scenario.
Crypto Market Overview 2022
Two significant cryptocurrency projects, Terra and FTX, failed this year. Regulators have expressed some worries about the same. The Bank of England’s deputy governor, Sir Jon Cunliffe, has been commenting on rules. After the FTX collapse, he claimed, the cryptocurrency industry might require greater regulation.
Additionally, the financial watchdog in Belgium recently stated that it does not view ETH and BTC as securities. In a recent report, the Financial Services and Markets Authority (FSMA) of Belgium provided justifications for the possibility of future regulation of the cryptocurrency industry.
Therefore, in the future, cryptocurrencies may face more difficulties and regulations due to the macroeconomic environment’s uncertainty.
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Disclaimer: This blog is for educational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.