• Bitcoin was trading around $16,600 on Wednesday with a 1% dip in the past 24 hours.
• Bitcoin is set for its worst annual returns since 2018, while major US indexes are headed for their worst yearly returns since 2008.
• Bitcoin’s 2022 performance has the asset on track for a worst return since the 73% drawdown in 2018.
Bitcoin has been trading relatively uneventful on Wednesday, with the cryptocurrency changing hands near $16,600. This marks a 1% decrease in the past 24 hours and is set to end the year with its worst annual returns since 2018. This year has been brutal to stocks as well, with the major US indexes on track for their worst annual returns since 2008.
The sudden downturn in the crypto market came after Bitcoin surged towards $17,000, only to cool off and leave the cryptocurrency at a 67% decrease in the past year. This makes 2022 the second-worst year for BTC since 2010. Bitcoin’s performance this year is on track for a worst return since the 73% drawdown in 2018, making it more than 75% down since its all-time high in 2021.
The picture across the stock market is similar for the major US indexes. The S&P 500 has dropped 4.1% this month and over 20% year-to-date, while the Dow Jones Industrial Average is down almost 17% this year. The Nasdaq Composite, on the other hand, has lost 6.8% this month, bringing its yearly losses to 13.7%.
Investors are now looking towards 2021 for signs of recovery. Cryptocurrency enthusiasts remain cautiously optimistic, with some predicting a bullish run in the near future. Although there are still a lot of uncertainties, the current market conditions suggest that the cryptocurrency market will continue to be volatile in the coming months. If Bitcoin continues to remain steady above $16k, then it could be the sign of a potential recovery going into 2021.