- This year cryptocurrencies have seen a backtrack.
- Last November, the price of one bitcoin peaked at almost $68,000.
- Cryptocurrency markets have experienced some reprieve this week.
This year, the movements of Bitcoin, Ether, and other cryptocurrencies have resembled those of stocks. They have fallen as a result of excessive inflation and interest rate increases by the Federal Reserve, which are meant to slow the economy but also tend to lower the value of financial assets like stocks, bonds, and cryptocurrencies.
Last November, the price of one bitcoin peaked at almost $68,000 according to CoinMarketCap. Today, it is just about $20,000. The market value of ether, the second-largest cryptocurrency behind bitcoin, increased to a high of around $4,800 per unit last year and is currently hovering around $1,350.
However, there may be some cause for hope. Although previous performance cannot predict future outcomes, evidence suggests that cryptocurrency values tend to increase in the final few months of the year and the start of the new year.
Due to the Electronic Frontier Foundation accepting Bitcoin in 2011, BTC surged and then backtracked again due to a lack of legal framework for virtual currencies. In February however, BTC reached $1.00, achieving parity with the U.S. dollar for the first time.
Months later, the price of BTC reached $10 and then quickly soared to $30 on the MT. Gox exchange but by mid-year, the price of Bitcoin was under $5. These clearly prove the advantage of making purchases during a yearly switch.
On the other hand, in January 2015, the volume of Bitcoin surged from 7,860,650 to 33,054,400 which was a great change that contributed to its greater volumes today.
For the majority of this time, the price was stable in the $200 to $400 range. However, after the second halving in 2016, the price started to rise. It soon reached five digits the following year and peaked at about $20,000 in December 2017.
After a string of central bank rate hikes last week, the cryptocurrency markets have experienced some reprieve this week at the time of writing. Before soaring to weekly highs of nearly $20,300 on Tuesday, bitcoin started the week at approximately $18,000. At the moment, it is trading at about $18,784.60, which is slightly better.
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