After reaching incredible highs toward the tail end of 2021, Bitcoin seemed to be on the up as we moved into 2022. It had survived and flourished during the pandemic and showed no signs of slowing down.
But in the last couple of months, the price has plummeted. In fact, Bitcoin is less than a third of what it was during that peak, and it could still drop further. These are very uncertain times for cryptocurrency users and investors, and July will be a very telling month.
So, let’s see what’s been happening and get an idea of where the market is heading.
The Biden Administration Could Change the Rules
There has been speculation that the US government will launch crypto legislation for a few years now. In 2022, with investors losing billions, it seems like that speculation could be realized.
It remains to be seen exactly what will happen, but the implication is that the Biden Administration will announce new rules and regulations governing the use of stable coins.
This could put pay to the issues surrounding coins like Tether and may help to prevent crashes in the future. Whether it will do much for the industry on the whole remains to be seen.
It’ll Get Worse Before it Gets Better
At its current price, you could be forgiven for thinking that now was the perfect time to invest in Bitcoin and other cryptocurrencies. But many experts believe that it will get worse before it gets better.
As always, there are a lot of varying predictions out there, but most agree that a few more grand will be shaved off its price before it stabilizes. The good news is that people are still investing. They are still hopeful. But of course, that could change very quickly.
El Salvador Buys More
The recent crash is bad news for the average investor, and if you were one of the millions of investors to hold Bitcoin and alt coins, you’re probably more than a little annoyed.
But spare a thought for El Salvador and its president, Nayib Bukele.
Bukele went all-in with Bitcoin, changing his country’s currency to this crypto and looking forward to a future governed by the blockchain.
The Central American nation had a stockpile of over 2,300 Bitcoin, a holding that had been purchased for over $100 million. Those Bitcoins are now worth around $40 million and that amount is dropping all of the time.
On the plus side, the ambitious leader seems to think that things will improve. He has used this downturn to purchase more Bitcoin, picking up an additional 80 BTC.
It’s worth noting that while some crypto enthusiasts have praised the El Salvador leader for being the first leader to commit so completely to this coin, many others have criticised him. El Salvador is not the richest country in the world and it’s far from a technological paradise, either.
If this project fails as a result of a crypto crash, it’ll mean more heartbreak and hard times for a nation that’s already on its knees.