• From $46,000 to $16,000, bitcoin lost over 65% of its valuation this year. Other cryptos have also experienced major declines this year.
Unlike 2021, the current year has been pretty bad for cryptocurrencies. All digital currencies have lost most of their value in the last 12 months.
Bitcoin, the world's most famous cryptocurrency, started the year on a bullish note when it hovered around $46,208 on May 10 and dropped to $30,000, before falling to $18,958 on June 19.
While the bitcoin price peaked at $22,400 on Sept. 13, it is now down to around $16,840 on Dec. 21, according to CoinDesk prices. The highest level of this digital currency was hit on March 30 when it reached $47,456.
And one can imagine, bitcoin was no exception. All other cryptocurrencies suffered a similar fate. From Ether to Polka Dot – all these decentralized currencies were in free fall during 2022.
Ether: Like Bitcoin, Ether also lost big during 2022. When the year began, Ethereum was trading at $3,677 per unit. CoinDesk prices showed that it fell to $2,442 at the end of the same month on January 25.
It recovered somewhat on April 5 when it bounced back to $3,520 but declined thereafter as Ether started touching new lows.
It fell below $1,000 on 19 June, rising again to $1,935 on 15 August. It is now around $1,210 on December 21.
Polkadot: Like other popular digital currencies, Polkadot too fell from $26.70 on January 1st to $4.52 on December 21st this year, which is a huge drop of 83 percent.
The cryptocurrency peaked at $30 on January 4, but fell to $18 on January 23. CoinDesk prices continued this decline and reached $8.30 on May 13.
Polkadot's price remained in single digits in the second half of the year. It was trading around $7.29 on 3rd September and around $6 on 11th November.
Market capitalization
The total market capitalization of these cryptocurrencies has also dropped significantly over the past year.
The total market cap of cryptocurrencies as on January 1, 2022 was over 2.24 trillion. It came down to less than a trillion in the month of June when it was around $900 billion.
However, in July, it bounced back again, taking the market cap above 1 trillion, later it started declining again and on 21 December the market cap stood at around $810 billion, reaching its 3 trillion mark in November 2021. less than one-third of the dollar's peak.
In India too, the overall sentiment for cryptocurrencies remained at an all-time low. During the 2022-23 budget, the finance minister introduced 30 percent TDS on capital gains earned on crypto transactions and another one percent TDS on crypto transactions.
This dealt a huge blow to investor interest, adversely affecting crypto transaction volumes on exchanges.
The next year, is not expected to present any good news for crypto investors.
“The market is likely to go sideways till the second half of 2023. Volume has definitely dropped, but it is better on international exchanges. Siddharth Sogani Jain, Founder and CEO, Crebaco, said, “Indian exchanges have been badly affected due to lack of regulations and strict tax policies.
Meanwhile, Coinswitch released a year-end report on cryptocurrencies and Indian investors' behavior towards them. The report shows that there are 19 million crypto users in India out of which only 8 percent are female users.
During 2022, 45 percent of investors who prefer crypto fall in the age group of 18-25 years. This is followed by 34 per cent investors in the age group of 26-35 years.
The report also shows that the most popular cryptocurrency during 2022 was bitcoin and comprised 12.12 percent of crypto investments in India.
It is followed by Dogecoin (11.54%), Ethereum (9.43%), Shiba Inu (6.92%), Polygon (4.13%) and Cardano (3.47%) and Ripple (2.57%).
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