Cryptocurrency

BTC second-worst YTD since 2011, expected to remain flat through 2023

Hull Invest

Bitcoin (BTC) has posted its second worst year-to-date (YTD) since launch in 2022. It is projected to remain flat until 2023, according to Arcane Research (AR).

BTC, which fell 65% by the end of 2022, only deteriorated once in 2018, dropping 73% YTD.

Source: Esoteric Research
Source: Esoteric Research

Compared to gold and the S&P 500, cryptocurrencies took the biggest hit in 2022 — with sharp declines in May 2022 and mid-June 2022, according to AR data.

“The 2022 crypto winter has been accelerated by a tightening macro environment and significantly exacerbated by crypto-specific leverage and poor risk management by core market participants.”

AR said that if reached in 2023, the next BTC market bottom “will be the longest lasting BTC drawdown ever.”

“2023 Prediction: Bitcoin will trade in a broadly flat range this year, but will trade above its opening price in 2023.”

After a year of central bank tightening, 2022 will be a “big dollar deal,” according to AR data.

“In 2022, the Federal Reserve’s effective funding ratio will rise from 0% to 4.25%, and from late 2022 to 2021, we will see a major revaluation of risk assets benefiting from easy money and a low interest rate regime. connected to.”

AR predicted that the Federal Reserve will raise interest rates throughout the first half of 2023.

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