Bitcoin ended 2022 down over 60%, which ranks as bitcoin’s second worst performing calendar year since the asset began trading in 2009. In 2018, bitcoin was down over 70% in the wake of the speculative frenzy around initial coin offerings before rebounding over 90% in 2019.
Throughout this year, rising interest rates amidst stubbornly high inflation impacted all risk assets, and bitcoin’s price was uniquely affected by the failures of several centralized industry players including FTX. Importantly, the Bitcoin network operated without interruption despite the turbulence. The gyrations in bitcoin’s value and the attention-grabbing headlines of this past year had no impact on the operation of the blockchain, which continued to process a new block of transactions every 10 minutes. In total, the network processed nearly 79M transactions by count in 2022, generally in line with the 83M in transactions executed during last year’s bull market.1
1 Entity adjusted transaction volume sourced from Glassnode as of 12/31/2022.
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