• 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
Cryptocurrency Market Resilience
The cryptocurrency market has been resilient despite a wave of bad news in 2022. Bitcoin trades above $30k, up 80% year-to-date (YTD), and HODL is proving to be the secret of its success with an increase in bitcoin hoarding in personal wallets.
Negative News from 2021
In 2021, there were multiple negative events that have affected the cryptocurrency industry. This includes the FTX collapse which was one of the largest frauds in history, a bear market for investors with bitcoin dropping from $69k to $15.5k within months, multiple crypto lender bankruptcies, and over 300 lawsuits and regulation cases.
Bank of America Research
Research conducted by Bank of America shows positive developments for the cryptocurrency industry. They found that since Bitcoin prices jumped above $30k, hoarding it into personal digital asset wallets increased significantly. This is impressive considering that Bitcoin was released less than two decades ago at 5 cents per coin back in 2010.
Volatility and Booms/Busts
The volatility and booms/busts seen within this relatively short period show how unpredictable cryptocurrency markets can be. It also serves as a reminder that investor caution should always be taken when investing into cryptocurrencies or any other asset class for that matter.
Despite various negative news stories surrounding cryptocurrencies throughout 2021, the market has shown resilience bouncing back from lows seen last year. Furthermore research conducted by Bank of America further reinforces this trend with an increase in bitcoin hoarding seen since prices jumped above $30k. Investors should remain cautious however as volatile markets can never be predicted with certainty and booms/busts are part and parcel of investing into any asset class