Bitcoin 2022 – A Year in Review
2022, for the most part, wasn’t a year of wild gains and stories of riches for many Canadians. Let’s face it, most day-traders won’t be day-dreaming about the good old days of 2022 …or will they?
While pondering a portfolio’s past, present and future, one usually reflects on 2 key points — what would have been a good time to buy and what would have been a good time to sell. Of course, the HODLer’s overarching philosophy would remain the same if say a 15 year “hold on for dear life” plan were in place and adhered to, but for the sake of the exercise, we’ll stick to the former.
January 2022 saw the BTC price start out above ~$52,000 CAD before testing $60,000 CAD at the end of March. Some considerable upticks were noted throughout the rest of the year until the present, but from a high level, what we saw was a downward trend through Q2, Q3 and Q4 to current price levels of ~$23,000 CAD at the time of writing.
Let’s rewind to the proposition at the top of this article. Will day-traders or crypto enthusiasts in general really not be day-dreaming about 2022 BTC price levels in the potentially very-near future?
Ask any HODLer or anyone in the crypto-space for the last ~5 years the following question: “Remember the summer of 2017?” or even more simply; “Remember 2018?”
Typically, the person asking either of these questions will be met with a raised eyebrow movement, accompanied by a slow head shake and in most cases, an audible exhale to accent the expression summarized best as 'missed opportunity'.
If history repeats itself, 2022 will be a year reflected upon as a time of second chances — a shot at redemption for those who missed the dirt cheap bitcoin price levels of the past. 2017 marked Bitcoin “coming out” party as it barged onto the mainstream media stage like a rockstar. 2018 flicked the lights on after the party and sobered up the crowd with a -72% annual return.
The next 3 years had investors and traders howling at the moon (more or less) non-stop. 2019 boasted a whopping ~87% annual gain which set the scene for 2020’s historical bull run which recorded an eye-watering ~302% ROI.
2021, which comparatively seemed like a “bad year” given the late Q4 BTC price freefall, still managed to end the year with a ~57% annual return — not exactly a poor showing by any investor’s standards.
The writing was on the wall heading into 2022. An overdue price correction combined with economic turmoil including record inflation levels, hit the crypto world leading to a year long (and counting) “crypto winter ”. For those who bought high, it’s a psychological chess game played with a bad taste left in the mouth. A true test to challenge one’s faith in the underlying blockchain technology and future use case for Bitcoin in general. The question is; does the individual or institutional investor(s) believe in bitcoin strongly enough to buy during the FUD times and not only the FOMO rides?
Buying bitcoin in 2022 isn’t easy on the conscience for many. A sea of negative noise in the media met at a confluence of jeers from peers can leave some crypto investors shook and uncertain. Hindsight is often 20/20, and if we go back to the response from the hypothetical question posed — what will the facial and non-verbal body cues express when asked in 2027 if the person is asked to remember 2022?
Zoom out on the charts and take a look for yourself. Does it look like Bitcoin is heading to zero or does it look like it’s entirely possible the price could continue north on its trajectory propelled by value based on its scarceness? You be the judge.
The first half of 2023 will be an interesting time and may give us insights and directional indicators regarding how the next year will play out. There haven't been back-to-back negative return years for bitcoin but at the same time, the future remains unwritten. Although we can’t give financial advice, all we can say is enjoy the ride and we wish you the best on your trades.
Are you looking to sell your Bitcoin or Ether to claim a capital loss, offset previous gains or are in hopes of scooping up some coins at a lower price? Sell now over at MyBTC.ca/sell. Looking to pad your crypto stash? Add more crypto to your wallet and buy now .