Bitcoin turned 14 years old on Tuesday, and what a year it's been for the adolescent cryptocurrency. After hitting a peak of more than $68,000 in November, 2021, its price declined throughout 2022 and is currently hovering around $17,000.

That marks a 13 percent decline from six months ago, and a 60 percent fall over 2022. 

At the same time, the crypto market that Bitcoin helped create has suffered a series of spectacular financial collapses and scandals that are set to continue into the new year. Fellow cryptocurrencies such as Solana, for instance, are down nearly 100 percent since this time last year, while crypto exchanges such as FTX are under criminal investigation for fraud. 

Trading volume also declined steadily through 2022, including a massive drop-off following the bankruptcy of FTX and the bearish sentiment that came with it. 

In other words, things are not looking good for young Bitcoin, especially compared to the overly optimistic predictions of last year. (One industry expert told Cheddar in January that he predicted the price would hit $400,000 per token in 2022.) 

However, some perspective might be in order. Bitcoin's first market price was $0.00099 in 2009, meaning the price has gone up around 1.7 billion percent. That's not bad for a digital asset that serves no purpose whatsoever outside of financial speculation. 

Yet replicating that level of growth at its current price is essentially impossible (as it would give Bitcoin a market value worth more than all the money currently circulating on the planet) so the question remains: What's next for this volatile teenage digital asset? 

Some Bitcoin bulls are holding out for another rally, but not before more pain. Matthew Sigel, head of digital assets research at VanEck, wrote in a recent blog post that he expects Bitcoin to drop into the $10,000-$12,000 range before shooting back up to $30,000. 

On the other end of the spectrum, Standard Chartered in a research note predicted that Bitcoin will fall as low as $5,000 as "more and more crypto firms and exchanges find themselves with insufficient liquidity."

Share:
More In Business
Starbucks’ Change Flushes Out a Debate Over Public Restroom Access
Starbucks’ decision to restrict its restrooms to paying customers has flushed out a wider problem: a patchwork of restroom use policies that varies by state and city. Starbucks announced last week a new code of conduct that says people need to make a purchase if they want to hang out or use the restroom. The coffee chain's policy change for bathroom privileges has left Americans confused and divided over who gets to go and when. The American Restroom Association, a public toilet advocacy group, was among the critics. Rules about restroom access in restaurants vary by state, city and county. The National Retail Federation says private businesses have a right to limit restroom use.
Trump Highlights Partnership Investing $500 Billion in AI
President Donald Trump is talking up a joint venture investing up to $500 billion for infrastructure tied to artificial intelligence by a new partnership formed by OpenAI, Oracle and SoftBank. The new entity, Stargate, will start building out data centers and the electricity generation needed for the further development of the fast-evolving AI in Texas, according to the White House. The initial investment is expected to be $100 billion and could reach five times that sum. While Trump has seized on similar announcements to show that his presidency is boosting the economy, there were already expectations of a massive buildout of data centers and electricity plants needed for the development of AI.
Load More