Investors in bitcoin and other crypto have had a very terrible year.

In 2022, Bitcoin’s value has fallen by more than 50 percent. In addition, the cost of a single bitcoin has plummeted more than 65 percent below its all-time high of around $70,000, currently hovering at $23,000. From over $2.2 trillion at the end of 2021 to a little more than $1 trillion right now, the value of all cryptocurrencies has plummeted.

About 42% of the market is accounted for by Bitcoin, the largest crypto in the world, but 2022 has been awful for the owners of other crypto-related assets like Coinbase. The stock of the firm has fallen 75% so far this year. Likewise, rival Robinhood’s stock has lost 50% of its worth.

There is optimism that crypto’s toughest days may be behind it. Bitcoin has increased by more than 15% in the last week, while two other leading cryptocurrencies have increased even more.

Solana has increased by more than 35% over the last week, while ether, often known as ether, has increased by about 45%. The second-most valued cryptocurrency, ether, is frequently used to finance the acquisition of non-fungible tokens, or NFTs, the digital assets that have completely revolutionized the collectibles industry.

Additionally, on the rise, Coinbase gained 9% on Monday. MicroStrategy (MSTR), a software business, has increased more than 35% over the last five days. June 30, it had almost 130,000 bitcoins on its balance sheet.

The biggest proponents of the industry may see validation in the cryptocurrency comeback. However, it should also serve as a reminder that the young market will probably continue to be unpredictable for some time.

Expect more volatility

“We will see a longer-term rally in the digital assets sector, but I wouldn’t get too excited yet,” said Joel Kruger, market strategist at LMAX Group. “This is still an emerging market.”

According to Kruger, the short-term outlook for bitcoin’s gain is uncertain since it has trailed behind the more abrupt price increases in ether and other smaller cryptocurrencies. He noted that until there is “a more robust bounce” in bitcoin, the whole group of cryptocurrencies and equities might not experience a more significant rebound.

Therefore, the widespread belief that bitcoin is the digital counterpart of gold is only that: a belief. Regarding asset behavior, bitcoin is far less stable than government-backed currencies like the dollar and euro and much more like volatile tech stocks.

Investors should also consider the possibility that there isn’t enough demand for cryptocurrencies to support the hundreds of available coins, tokens, and exchanges. Only the most resilient cryptos will prosper if that is the case.

Adam Grealish, head of investments at wealth management fintech Altruist, said, “Crypto has experienced a run like the dotcom period,” during which many innovative ideas and businesses were founded. Unfortunately, he noted, many less than stellar concepts and businesses were also established.

For crypto, the same situation is most likely to hold. Companies with weaker positions and business strategies will see a lot of pressure as marketplaces become more competitive, according to Grealish.

Keep it from the cryptocurrency bulls. Shares of almost all firms with connections to the industry are rising due to the larger surge. In addition, a number of bitcoin mining companies have recently experienced a dramatic increase in value. These businesses employ computers to solve challenging mathematical equations to produce new bitcoins.

Marathon Digital (MARA) gained 21% on Monday and has increased by more than 50% in the last week. In the last five days, Riot Blockchain (RIOT) has increased by more than 40%, while Hive Blockchain (HVBTF) and Bitfarms have each increased by approximately 25%.

Has the price of Bitcoin, Ether, and other popular crypto stocks finally peaked? There are some positive indicators.

Winners and losers

Silvergate Capital (SI) and Signature Bank (SBNY), two banks that provide deposits in digital currency and issue crypto-backed loans, each posted earnings and sales on Tuesday above expectations on Wall Street.

Additionally, it appears that publicly listed corporations and startups have seen a shakeout due to the sector’s unrest, producing winners and losers.

This month, the cryptocurrency lender Celsius was compelled to declare bankruptcy. However, the largest privately held cryptocurrency exchange FTX is still growing and is currently valued at $32 billion.

The failing crypto startup BlockFi recently received a line of credit from FTX. The company’s wealthy CEO, Sam Bankman-Fried, has expressed interest in leveraging FTX’s financial resources to help other suffering crypto businesses.

Additionally, Bankman-Fried owns stock in Robinhood, and FTX has recently been rumored to be interested in purchasing the faltering brokerage house. However, to CNN Business, Bankman-Fried vehemently refuted the claims.

Read more:

• Over $300 million in bitcoin was transferred by cryptocurrency miners in a single day, and some are giving up completely
• As bankruptcy begins, cryptocurrency lender Celsius defends its ambitions for bitcoin mining
• Bitcoin reaches $22,000 as the cryptocurrency market anticipates the shakeout and contagion to be over; ether rises 10%