Bitcoin Heads for Worst Year Since 2018 as Major US Stocks Also Suffer

• Bitcoin is currently trading around $16,600, down 1% in the past 24 hours and headed for its worst yearly returns since 2018.
• Major US stock indexes are also headed for their worst annual returns since 2008.
• Bitcoin volatility has been at its 2022 low this week, with the surge towards $17,000 cooling off to leave the cryptocurrency 67% down in the past year.

Bitcoin was trading around $16,600 on Wednesday, down 1% in the past 24 hours. The cryptocurrency is heading for its worst yearly returns since 2018, as major US stock indexes are also headed for their worst annual returns since 2008. Bitcoin has been uncharacteristically uneventful this week, trading around $16,600 as investors weighed an end to a brutal 2022.

The digital gold’s performance this year has the asset on track for a worst return since the 73% drawdown in 2018. In the 2014 bear market, Bitcoin price fell 58%. Other years with lower returns were +35% in 2015 and +66% in 2021, with the cryptocurrency now more than 75% down since its all-time high in 2021.

Bitcoin’s volatility has been at its 2022 low this week, with the surge towards $17,000 cooling off to leave the cryptocurrency 67% down in the past year. The S&P 500 is down 4.1% this month and over 20% year-to-date, while the Nasdaq Composite is down 6.4% this month and 18.5% on the year.

Despite this, some analysts remain bullish on Bitcoin. Fundstrat founder Tom Lee said that he believes that the crypto market will recover in 2022 and that the next bull run will be driven by institutional investors. He said that the current crypto market is being driven by retail investors, but that the next cycle will be driven by institutional investors, which will have a much bigger impact on the market.

The outlook for Bitcoin in 2022 is uncertain, as investors are closely watching for any news about institutional involvement. Despite the bearish sentiment, many investors remain hopeful that the cryptocurrency will recover in the coming year and that the market will continue to grow.