No doubt, 2022 was one of the crucial worst years for Bitcoin (BTC) customers, primarily because the asset’s worth dropped by 65%. While there were some specific reasons for the tumble, comparable to the LUNA-UST atomize in May maybe and the FTX implosion in November, the greatest motive was the U.S. Federal Reserve policy of tapering and elevating pastime rates.
Bitcoin’s worth had dropped 50% from its height to lows of $33,100 sooner than the LUNA-UST atomize, thanks to the Fed payment hikes. The first essential tumble in Bitcoin’s worth was as a result of rising market uncertainty spherical doable payment hike rumors in November 2021. By January 2022, the stock market had already started exhibiting cracks as a result of the growing stress of coming near near tapering, which also negatively impacted crypto prices.