This shows a difference from the period in which capital outflows prevailed, when the prices of these cryptocurrencies hit lows not seen since 2020.
Why was 2022 a bad year for cryptocurrencies?
Cryptocurrencies passed a litmus test this year. To the external factors that harmed its performance, such as global inflation and the rise in rates of the main central banks, were added intrinsic problems of its ecosystem, such as the loss of parity of algorithmic stablecoins and the bankruptcy of some of its the main exchanges.
Thus, among the first 100 cryptocurrencies with the highest capitalization, there were only two exceptions and falls of up to 100% were registered. Among the first 20, the one that lost the most was Solana (-94.4%), they also had a terrible performance: Avalanche (-90.1%), Polkadot (-84.8%), and Cardano (-81.8 %). Shiba Inu plunged 76.6% and Uniswap lost 70.9%
As for the two with the highest volume, Bitcoin and Ethereum had losses of 65.1% and 68.3%, respectively. In turn, Binance Coin lost 53.8%, Ripple 58%, and Doge Coin 58.8%. There were also cryptocurrencies with more moderate falls such as Tron with 29.3%, or Unus Sed Leo with 7%, among the top twenty with the largest market capitalization.
What happens at the beginning of this 2023
During January the market managed to add US$280 million in the month, managing to recover the 1,000 million market capitalization lost after the bankruptcy of FTX. Some altcoins made gains of more than 100% while Bitcoin managed to break the $23,000 barrier.
The cryptocurrency closes the first month of the year with gains of almost 40%, its best monthly performance since 2013. It should be noted that the BTC has just sealed its highest weekly close in almost six months and, in addition, achieved a rise of up to 50% compared to its November lows.
At the beginning of January, Bitcoin was trading at $16,500 and until the end of January, Bitcoin was trading above $23,000. Perhaps the bullish signal from its price is enough for investors to return to betting on the crypto leader.
Source: Ambito
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