November saw a reduction in BTC mining revenue for publicly traded miners, a decline in venture capital investment, and signals of Bitcoin going to $12,000.
The crypto markets have been in decline since the start of the second quarter of 2022. Each time it seemed like the apparent crypto winter would experience a minor thaw, another notable collapse happened: Celsius, Three Arrows Capital, and more recently, FTX.
Approaching the end of 2022, it appears that the same negative sentiments are likely to remain. While some analysts say that Bitcoin (BTC) and Ether (ETH) derivatives are currently flashing positive signals for the market due to their high volatility, that same volatility is impacting the sentiment of other areas, including regulation, mining, nonfungible tokens (NFTs) and crypto stocks. Even with all this, companies such as Porsche are getting into the Web3 and NFT space and Brazil passed a law legalizing crypto payments nationwide. Over 60 deals from venture capital were still completed in November, bringing $800 million of capital inflows into the space. There are many great things being built during this time of uncertainty, but it is admittedly hard to ignore the current market conditions.
Bitcoin is the bellwether of the entire crypto industry, and the market bottom may not yet be in. Historical bear market price drawdowns suggest BTC could still see a drop to the $12,000–$14,000 range.
With all this uncertainty, it’s useful to have subject matter experts who can help navigate all the various facets of the cryptoverse. This is why every month, Cointelegraph Research releases its Investor Insights Report analyzing key indicators from multiple sectors of the blockchain industry, including regulation, crypto mining, security tokens, Bitcoin and Ether derivatives and VC activities — all explored by those working closely with the subject matter.
Potential further downside in Bitcoin price
All eyes turn to Bitcoin as the market looks for any kind of clues from the past that might inform the future. Bitcoin has held up astonishingly well despite the constant speed bumps that have gotten in its way.
As seen in the chart below, Bitcoin has historically reached drawdowns of 80% or greater from its previous highs during the halving cycle before climbing as it heads into the next bull market. While this cycle may be different due to all of the positive things Bitcoin and crypto have achieved over the past few years, it is still likely that it will at least touch the $12,000–$14,000 range before rebounding in the short to medium term.
The Cointelegraph Research team
Cointelegraph’s Research department comprises some of the best talents in the blockchain industry. Bringing together academic rigor and filtered through practical, hard-won experience, the researchers on the team are committed to bringing the most accurate, insightful content available on the market.
Demelza Hays, Ph.D., is the director of research at Cointelegraph. Hays has compiled a team of subject matter experts from across the fields of finance, economics and technology to bring to the market the premier source for industry reports and insightful analysis. The team utilizes APIs from a variety of sources in order to provide accurate, useful information and analyses.
With decades of combined experience in traditional finance, business, engineering, technology and research, the Cointelegraph Research team is perfectly positioned to put its combined talents to proper use with the latest Investor Insights Report.
The opinions expressed in this article are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.