Key Facts.

  • Since 2011, bitcoin’s price closed in January down 5x.
  • In 2018, the year the so-called “cryptocurrency winter” began, bitcoin fell nearly 26% in dollar terms.

The valuation of Bitcoin (BTC) in U.S. dollars closed January 2022 with the biggest drop since 2018. The cryptocurrency's price fell 16.7% and dipped below a low of $33,000, making it the worst January in four years.

According to Investing.com's history, there hasn't been a higher drop since January 2018, the year of the long bear market baptized as the "cryptocurrency winter." In that year, the price per bitcoin fell 25.88%.

January 2022 marked just 12 days of green rallies in the price of bitcoin, Bloomberg said. The volatility sent its valuation down to a low of $32,985, about 52 percent below the all-time high of $69,000 set in November 2021. The final price for the period recovered slightly to close at around $38,500 for the first month of the year.

tabla-de-eneros.png Since 2011, Bitcoin has closed 5 times in January. The biggest drop was in 2015. Source: Table created by CriptoNoticias, data from Investing.com

As reported by CriptoNoticias, the year began with news that affected asset markets and led to a massive sale of risky assets, including bitcoin. Among them, the U.S. central bank (FED) may rise. In addition, Kazakhstan, the second most centralized country in the world in terms of bitcoin counting power, also experienced a massive power outage.

However, the issue led to other downgrades in bitcoin prices on the eve of a new interest rate meeting by the U.S. authorities, sending it to a low for the month. However, the expected announcement did not happen and the bitcoin market responded with an 18% rally.

One of the signs of the month was the increase in correlation between Bitcoin and traditional markets. For the first time, the cryptocurrency trend corresponded to the Nasdaq index with a coefficient of 0.66. The correlation between Bitcoin and the S&P 500 index also hit an all-time high in January.

Analysts say prices may continue to pick up

However, analysts such as Willy Woo believe there is a possibility of a rebound in bitcoin prices, as the January decline was not supported by the fundamentals evident in the network.

In this sense, the end of this month registered the largest volume of BTC transactions among exchanges in the last three years, which is interpreted as an intention of investors not to sell their holdings of bitcoin. Instead, traders appear to be buying and storing BTC at a discount during the early 2022 decline.

According to the CriptoNoticias calculator, bitcoin was trading at $38,650.37 at the time of this writing.