- Bitcoin traded at $16,600, a little over 1% lower than the previous 24 hours.
- The cryptocurrency market is headed for its worst annual returns since 2018.
- Stocks also experienced a rough patch in 2022. The major US indexes were on the verge of their worst annual returns since 2008.
Bitcoin traded at $16,600 on Wednesday as investors considered the end of a brutal 2022.
The benchmark cryptocurrency was just in the red during early afternoon trading (2:10 pm ET) as Wall Street also turned negative amid fading optimism over China’s reopening.
Markets will end 2022 at a lower level
Bitcoin volatility has fallen to its 2022 lowest level this week. With the rise towards $17,000 slowing down, the cryptocurrency is now 67% less volatile than it was in 2017.
Actually, 2022 is the year that has seen the worst returns for Bitcoin since 2010. The digital gold’s performance during this markedly bear year has the asset on track for a worst return since the 73% drawdown in 2018.
In the 2014 bear market, Bitcoin price fell 58%, with other years with lower returns being +35% in 2015 and +66% in 2021 – indeed Bitcoin is more than 75% down since its all-time high in 2021.
While Bitcoin is struggling to keep gains above $16k in the long-term, the situation across the stock markets is similar for major US indexes. The S&P 500 has fallen 4.1% this month, and is now down over 20% for the year. Meanwhile, the Dow and Nasdaq are down -2.5% & -7.1% in the past 30 days, respectively.
The historically bullish season in equities was largely negative. There have been ongoing investor jitters over inflation and rate rises as well as the outlook for global economy. This has added to the downward pressure which has persisted for much of the year.
So, Bitcoin is expected to have its worst year since 2018, and US stocks will experience their worst annual returns in eight years.