Bitcoin, being the most popular cryptocurrency, stays always under the spotlight of social media. 2021 was a significant year for bitcoin when its price lifted it to the highest level of all time. After that, though it is going through a massive downfall in 2022, BitIQ popularity remains the same. According to one news report published on 12th May 2022 by ABP Live, the value of Bitcoin has changed by approximately -11.69%.
Bitcoin’s market capitalization dropped in 2022: The most popular and demanded cryptocurrency bitcoin was at $1,156 billion in October 2021 as per market capitalization. But bitcoin’s market capitalization dropped to $731.99 billion as of 1st May 2022.
Bitcoin’s market valuation in 2022: With the market capitalization the bitcoin’s price has also decreased. Its value skyrocketed to $ 61,300 in October 2021. Buy bitcoin now is at $30,269.59 as of 10th May 2021.
2021 investors are underwater in 2022:
The investors who joined the market in 2021 are going through a really hard time now because of the extreme price fall of bitcoin in 2022. This can be easily understood if we see the graph from a bit earlier. In September 2022 bitcoin’s price was around $10,700. After that, a sudden increase in price started and ended at a price of over $58,700 in March 2021. This was the first-time bitcoin went so high. It acted like hope to many investors even for many institutions for making long-term investments. In October 2021 the value of bitcoin skyrocketed to over $61,300. There is a computerized database and ledger in which Crypto is stored.
Bitcoin’s price prediction for 2022: Experts predicted that bitcoin’s price will go high in the year 2022. It has a great chance to surpass the price of 2021 and reach almost $82,000. But again, it can drop to over $65,000 by the end of the year.
In the experts’ opinion, bitcoin’s price highly depends on its supply and demand ratio. Unlike fiat currency, bitcoin is finite. A maximum of 21 million bitcoin can be created among which already over 18 million have been mined.
Significant growth in bitcoin investment in 2022: The number of people investing in bitcoin has increased 72% from the last year. As of March 2022, more than 81 million people are using a platform named Blockchain.com that helps in buying bitcoin. People are creating unique bitcoin wallets on this platform to buy and trade bitcoin. It is a 237% increase in bitcoin investment from the year 2018.
Bitcoin’s price fluctuation has a positive effect on altcoins: The sudden price drop of bitcoin in 2022 let many altcoins come into the front row. Other cryptocurrencies like Cardano (ADA), Salona (SOL), Polkadot (DOT), and Binancecoin (BNB) are doing pretty well now. The demand for these currencies has been increased which makes a chance to diversify many investors’ portfolios with them. These currencies are coming to mainstream investment by many investors in 2022 as a result of bitcoin’s poor performance in the last few months.
GST Council’s tax levying on bitcoin: According to some recent news sources, the GST Council is considering levying a 28% tax on cryptocurrencies including bitcoin, and on its related services. They will probably pass the bill at the next GST Council meeting. Crypto is always a kind of volatile market that you find in India, and hence, once you get the best deals on Crypto, you can surely create the right track through which you will be beneficial to a high extent. Bitcoin, Litecoin, Ethereum and Ripple are also four of the digital currencies that have suffered a lot during the pandemic.
Conclusion: Irrespective of the rise and fall in bitcoins journey, investors will go on investing and keep on making a profit with the right investment strategies. As of January 2022, there are 455 crypto exchanges around the world. But for a new investor finding the right one from those might be hard. We suggest the Bitcoin era application that provides a beginner-friendly method to invest in bitcoin with all other facilities like understanding the market, risk-mitigating strategies, etc. However, you should note that crypto is always an unregulated form of crypto that can have tremendously positive or negative results depending on market fluctuations. Hence, you should not always scatter all of your savings only in Crypto.