After more than a decade, if someone doubts the reputation of the cryptocurrencies, thinking they are nothing but a fraud, then they must look at Bitcoin (BTC).
Bitcoin has been around in the cryptocurrency industry ever since the advent of the industry itself. Its idea was proposed back in 2008 and it was launched in 2009 by Satoshi Nakamoto.
Since then, Bitcoin has continued growing in prominence as well as recognition across the globe. At first, Bitcoin found its place and worth inside the computers of the tech-savvy people.
Over time, its reputation and recognition has continued growing bigger and before anyone could realize, Bitcoin entered the year 2021. This is when Bitcoin gained the attention and adoption it had never witnessed before.
The year 2021 proved to be the best for all of the crypto markets but it was phenomenal for Bitcoin. A year earlier (in 2020), the highest level BTC had hit was around $28k.
However, in the year 2021, the highest level Bitcoin hit was worth $69k, which was a huge achievement for the largest crypto by valuation.
Unfortunate Events for Bitcoin
Unfortunately, things did not fully work out in favor of Bitcoin as the year 2021 came to its conclusion. China, a country that had been the biggest supporter and miner of Bitcoin detested it.
Starting May 2021, the Chinese regulators started enforcing a blanket ban on the entire cryptocurrency industry. At that time, China was the highest miner of Bitcoin but with the Chinese regulatory enforcement, mining companies were forced out of its jurisdiction.
It caused a huge dent for Bitcoin but its impact was beyond Bitcoin as the entire cryptocurrency industry paid the price. Before the Chinese regulatory action, the overall valuation of the crypto industry was almost $3 trillion.
Prior to the great plunge, the valuation of Bitcoin itself was almost $1.5 trillion.
After the ban, the overall market valuation plunged to around $1.4 trillion. The valuation of Bitcoin also ended up plunging below $600 billion.
Despite the downfalls in 2021, BTC was able to hit all-time highs and in November 2021, it rose to $69k.
As Bitcoin entered the year 2022, its situation changed dramatically and from the beginning of the year until now, BTC has declined to its November 2020 low level.
Two Major Setbacks in 2022
Bitcoin has faced two major setbacks in the year 2022. The initial setback was the crash of the Terra network which pulled the crypto market’s overall valuation down by $800 billion.
The second setback took place recently with the collapse of FTX. It has also resulted in a major collapse of Bitcoin. The FTX crash took place on November 7 and since then, BTC’s price has slightly recovered.
Future of Bitcoin
Due to the recent crashes, many of the investors have lost their faith in Bitcoin. They are now withdrawing the Bitcoin from their exchange wallets to self-custodial solutions.
There is a fear in the crypto market and among the brokers that the investors may sell the Bitcoin they have withdrawn from the exchanges to save what is left of their investments.
Most of the analysts Have also predicted a decline in the trading price of Bitcoin in the hear 2023.
However, some of the most influential personalities such as Elon Musk, Mike Novogratz, Mark Cuban, Tim Draper, and Michael J. Saylor are bullish about Bitcoin in 2023.
They are confident that Bitcoin will make it through the difficult times without much of a trouble. It would continue leading and dominating the cryptocurrency market in future.
According to Michael J. Saylor, the founder of business intelligence firm MicroStrategy, Bitcoin will hit $500,000 by the end of 2023.
Whereas, Tim Draper has predicted that Bitcoin price will be able to hit a high trading price of $250,000 by the end of 2023.