Cryptocurrency is constantly evolving, and 2023 is shaping up to be an exciting year for the industry. In this article, we take a look at the latest news and developments in cryptocurrency, giving you a glimpse into the future of this dynamic and rapidly growing field. For investment, Try The official site Bit IQ app.
Regarding Price drops
Anyone who has been keeping in sync with the market can see that the year 2022 was not good for the investors of cryptocurrencies had thought it would. While the value of the overall market capitalization dropped by more than $2 trillion, the price of Bitcoin (BTC) fell from a high of $69,000 to a super low of a mere $15,599 at the beginning of November. This price drop occurred throughout the same period.
It wasn't great for investors from any angle. The market value for Bitcoin was $902.10B on 1st January, 2022, but by 1st January, 2023, it had dropped to $319.24B. In short, it was a great BTC that has been on a roller coaster journey from its all-time high in November 2021, and it ended 2022 with a value of over $15,000. I short, bitcoin has witnessed a big drop!
With respect to Tax payments
In a recent development, Colorado has declared that they are good to accept tax payments through crypto for the convenience of the taxpayers. They would like to go for varieties of crypto-currencies. The governor of Colorado has shown interest in dealing or associating with various organizations dealing with crypto to pull this off. This trend to go on for many more.
thumbs-up from major banks
With the president of ‘American Bankers Associations’ talking positively about the future of Crypto, Banks are on the verge of finalizing a road map to involve and present crypto to the customers more safely and responsibly. Many of the banks are in the process of making ‘stable coin’ USDF. This is one of the much-desired positives which can give cryptocurrency like bitcoin a great advantage in the financial arena.
The impact of the implementation of a new strategy by the Federal Reserve
Implementing a new strategy by the Federal Reserve at the beginning of 2022 was one of the primary factors that contributed to the fall. This occurred shortly after the beginning of the year. The price of Bitcoin dropped to a local low of around $42000 in January, pulling the rest of the market down with it. However, it was only the beginning; other choices made by the Fed drove Bitcoin down even less than $18,000
Dip in the cash flow
In June, another negative record for the year was established when the miners' cash flow dropped by 80% from its high and returned to levels last seen two years before. In the same month, public firms in the sector sold more bitcoin than they mined for the very first time in the history of the industry. It was then followed by several high-profile bankruptcies, which eroded the faith of crypto investors and led to – can you guess what happened? – further collapse.
Positivity alongside uncertainty
There is still cause for hope despite the pessimistic forecasts of Bitcoin's detractors. Once every four years, the reward for mining Bitcoin is expected to be halved, a phenomenon known as "halving." Looking at historical data, we can see that this process increases the value of BTC by reducing the supply of coins in circulation and the number of potential miners.
It is predicted that the second halving to occur in the early spring of 2024. But first, you need to be ready for a rally. After 2022, however, the definition of a "rally" may be subject to revision. When it comes to Bitcoin, it has shown to be robust enough to weather global storms during the last year, and it will almost certainly remain the asset that has the most impact on the value of the cryptocurrency market as a whole.
Conclusion
In short, the market will continue to be volatile with respect to Bitcoin or the crypto world but the positivity and goodwill of Bitcoin will continue to contribute to its consistent journey of it in the crypto domain.
