Bitcoin stumbled into 2022. It finishes the year slouched in an alleyway, stripped of its concoction of cheap money and leveraged bets, and rejected by the establishment.
The most valuable cryptocurrency has lost 60% of its value, and the entire crypto market has decreased by $1.4 trillion as a result of corporate failures like Sam Bankman-FTX, Fried’s rising interest rates, declining risk appetite, and other factors.
According to data from digital asset manager CoinShares, crypto funds saw net inflows of $498 million in 2022 vs $9.1 billion in 2021, illustrating how mainstream finance avoided the market during its “annus horribilis.”
As per James Malcolm, head of FX strategy at UBS, he spent 70% of the first half of the year talking about cryptocurrency with clients.
Comparatively, last month while travelling for 10 days throughout North America from Montreal to Miami, “I spent less than 2% of my time talking crypto.”
Cryptocurrencies were realistically considered as being two or three years away from being accepted by mainstream institutional investors even last year, before the downturn started in November, Malcolm continued.
“Right now, it’s all in the far, far future.”
