Bitcoin holds $16K as markets edged towards 2022 close
- Bitcoin was changing hands near $16,600 on Wednesday, about 1% down in the past 24 hours.
- The cryptocurrency is heading for its worst yearly returns since 2018.
- Stocks have also hit a brutal patch in 2022, with major US indexes headed for their worst annual returns since 2008.
Bitcoin remained uncharacteristically uneventful on Wednesday, trading around $16,600 as investors weighed an end to a brutal 2022.
The benchmark cryptocurrency was just in the red during early afternoon trading (2:10 pm ET) as Wall Street also turned negative amid fading optimism over China’s reopening.
Markets to end 2022 lower
In crypto, Bitcoin volatility has been at its 2022 low this week, with the surge towards $17,000 cooling off to leave the cryptocurrency 67% down in the past year.
In fact, 2022 is shaping as the year with the second-worst returns for BTC since 2010. The digital gold’s performance during this markedly bear year has the asset on track for a worst return since the 73% drawdown in 2018.
In the 2014 bear market, Bitcoin price fell 58%, with other years with lower returns being +35% in 2015 and +66% in 2021 – indeed Bitcoin is more than 75% down since its all-time high in 2021.
As Bitcoin struggles to hold onto gains above $16k, 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 Dow and the Nasdaq are -2.5% and -7.1% over the past 30 days respectively.
The historically bullish season for equities has been largely negative, with ongoing investor jitters around inflation and rate hikes, and the overall outlook for the global economy, adding to the downward pressure that has persisted for most of the year.
As such, while Bitcoin is set to see its worst yearly performance since 2018, US stocks are poised for their worst annual returns since 2008.