- Bitcoin was changing hands near $16,600 on Wednesday, down about 1% in the past 24 hours.
- The cryptocurrency is headed for its worst annual returns since 2018.
- Stocks have also hit a brutal patch in 2022, with major US indexes heading for their worst annual returns since 2008.
Bitcoin remained uncharacteristic on Wednesday, trading around $16,600 as investors braced for a brutal end to 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 hopes for China’s reopening.
Markets until the end of 2022 lower
In crypto, Bitcoin volatility is at a 2022 low this week, with the rise towards $17,000 cooling off to leave the cryptocurrency 67% down over the past year.
In fact, 2022 is shaping up to be the year with the second-worst return for BTC since 2010. The asset is on track for its worst return since 2018’s 73% drawdown on digital gold’s performance during a significant bear year. this.
In the bear market of 2014, the price of Bitcoin fell by 58%, with other years with lower returns of +35% in 2015 and +66% in 2021 – in fact Bitcoin is more than 75% down from its all-time high in 2021.
As Bitcoin struggles to hold gains above $16k, the picture across the stock market is similar to the major US indices. The S&P 500 is down 4.1% this month and over 20% year to date, while the Dow and Nasdaq are -2.5% and -7.1% over the past 30 days respectively.
The historically bullish season for equities has been largely negative, with continued 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.
So while Bitcoin is poised to see its worst annual performance since 2018, US stocks are poised for their worst annual returns since 2008.
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