• Bitcoin was trading around $16,600 on Wednesday, down 1% in the past 24 hours.
• 2022 is shaping as the year with the second-worst returns for BTC since 2010, with the asset on track for a worst return since the 73% drawdown in 2018.
• The S&P 500 is down 4.1% this month and over 20% year-to-date, while the Nasdaq Composite is down 6.6% this month and 27.3% year-to-date.
Bitcoin has been uncharacteristically uneventful on Wednesday, trading in the red during early afternoon trading (2:10 pm ET). The benchmark cryptocurrency was changing hands near $16,600, about 1% down in the past 24 hours and heading for its worst yearly returns since 2018. Wall Street has also hit a brutal patch in 2022, with major US indexes headed for their worst annual returns since 2008.
The surge towards $17,000 that Bitcoin experienced earlier this week has cooled off, leaving the digital gold down 67% in the past year. This marked bear year has 2022 shaping as the year with the second-worst returns for BTC since 2010. The asset is on track for a worst return since the 73% drawdown in 2018. Bitcoin is more than 75% down since its all-time high in 2021, with 2014’s bear market seeing BTC price fall 58%. Other years with lower returns were 2015 with +35% and 2021 with +66%.
The picture across the stock market is similar for the major US indexes. The S&P 500 is down 4.1% this month and over 20% year-to-date, while the Nasdaq Composite is down 6.6% this month and 27.3% year-to-date. The Dow Jones Industrial Average is down 4.5% this month and nearly 15% year-to-date.
The dismal performance of the stock market and the cryptocurrency market in 2022 can be attributed to a range of factors, including a disappointing economic recovery and the lack of a comprehensive fiscal stimulus package. The pandemic has caused a massive disruption to the global economy, leading to record levels of unemployment, business closures, and bankruptcies.
The future of Bitcoin and the stock market remains uncertain as investors continue to weigh the implications of an end to a brutal 2022. As Bitcoin struggles to hold onto gains above $16k, the major US indexes seem poised to end the year lower. The S&P 500 and the Nasdaq Composite are both down significantly, while the Dow Jones Industrial Average is also down nearly 15%. In crypto, Bitcoin volatility has been at its 2022 low this week, signaling that investors remain uncertain of the future of the asset.