Bitcoin records the worst start to the year since the birth of the crypto ecosystem

Bitcoin accumulated losses close to 12 percent in the first week of 2022, the biggest drop at the beginning of the year for a decade.

Thus, the most important crypto by valuation fell for the 5th time in a week, thus registering the worst first seven days of the year since 2012, in the early days of cryptocurrencies.

In the In the first seven days of January, bitcoin fell 3.7 percent to $40,765 at the close of New York trading that day, posting a 12 percent drop.

Although This Wednesday, January 12, a rebound stage has begun, the beginning of 2022 has already been marked as a negative record in the most relevant crypto in the market.

Ether, the base token of the ethereum network, also fell sharply, approaching $3,100.

The same as the Bloomberg Galaxy Crypto index, which fell for the fourth consecutive day.

“Probably the coins Digital markets remain under pressure as the Federal Reserve Board (Fed) eases its liquidity injections,” said Jay Hatfield, CEO of Infrastructure Capital Advisors. “The BTC will possibly close the year in values ​​close to 20 thousand dollars”.

How bitcoin was born

BTC was created after the financial crisis that affected the whole world in 2008. The creator or anonymous group was known as

Satoshi Nakamoto.

Bitcoin started trading a year later, in 2009, and data about its early price is almost non-existent.

Mike McGlone , an analyst at Bloomberg Intelligence, commented that $40k is a fundamental technical support base for cryptocurrency.

Digital currencies serve as an indicator that there is currently a reduced risk appetite.

However, he foresees that the BTC will come out ahead while the digitalization of the world is increasing and the cryptocurrency becomes a guarantee of savings, like gold.

The health crisis due to the coronavirus boosted the cryptocurrency making institutions and investors less ists are interested in the digital currency market and its accessories.

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Restrictions and fears

Currently the Fed has adopted a restrictive policy, affecting different assets such as shares and digital tokens.

“The restrictive policy adopted by the Federal Reserve impacts interest rates, and also the risks of assets, while the Federal Reserve withdraws funds from the capital markets . Riskier investments, such as unprofitable technologies, meme assets, and digital currencies, are being disproportionately damaged compared to other markets, because these investments have twice the volatility of traditional markets, since they have twice more risk premium than average assets”, said the CEO of Infrastructure Capital Advisors.

Noelle Acheson, director of the market outlook area of ​​​​the broker Genesis Global Trading, pointed out that the decline of the largest cryptocurrency in the market is encouraged to a greater extent by operators than short term.