The cryptocurrency market remains resilient despite a wave of bad news in 2022. Bitcoin trades above $30k, up 80% YTD.
The cryptocurrency market remains resilient despite a wave of bad news in 2022
Bitcoin trades above $30k, up 80% YTD
HODL seems to be the secret of Bitcoin’s success as Bitcoin hoarding in personal wallets rises
2022 has been a terrible bear market for cryptocurrency investors since November 2021. Bitcoin, the leading cryptocurrency, dropped from $69k to $15.5k in a matter of months.
Other cryptocurrencies followed.
Over the last year, the industry was hit by a wave of negative news. Just think of the FTX collapse, which turns out to be the largest fraud in recent history.
Also, the $2 trillion bear market was the largest in the (relatively short) cryptocurrency market’s history. Moreover, multiple crypto lender bankruptcies have been announced.
Finally, over 300 lawsuits and regulation cases scared investors away.
Yet, the market bounced. It is incredibly resilient, rewarding investors believing in it. For instance, Bitcoin trades above $30k, up +80% YTD.
Bitcoin hoarding in personal wallets is a positive sign
Recent research from the Bank of America shows positive developments for the cryptocurrency industry. HODL seems to be the secret of Bitcoin’s success. According to the research, hoarding in personal digital asset wallets increased after Bitcoin’s price jumped above $30k.
This is nothing short of impressive, considering that Bitcoin was released less than two decades ago. To put it into context, one Bitcoin was priced at 5 cents in 2010.
It tells much about the cryptocurrency market’s volatility and that booms, busts, mania, and despair are the norm.
