In brief

  • The price of BTC has dropped over 11% in a week.
  • Volumes were down the week after Christmas.

In the days leading up to December 25, Bitcoin price prophets got an early Christmas present: BTC prices spiked back above $50,000 after languishing in the $40,000s. On December 27, the price kissed $52,000 under the mistletoe—its highest rate since the beginning of that month.

But the remaining 12 days of Christmas were nothing but rock-hard fruitcake. It’s been a brutal 2022 for Bitcoin thus far. A price decline of 11% in the last week, and 17.5% over the last two weeks, has left Bitcoin below $42,000 for the first time since September.

What or whom is to blame for a market dip that has also resulted in double-digit percentage losses for Ethereum, Solana, Terra, and other major assets?

Is it Kazakhstan, which absorbed 18% of the Bitcoin hashrate after China cracked down on crypto mining only for the country to lose internet service (and a prime minister) this week? Is it the Federal Reserve, which is preparing for interest rate increases that should slow the economy’s growth? Could we maybe just blame it on Elizabeth Holmes and be done with it?

Midway through this week, Arcane Research noted that things were already looking sour. “Bitcoin trading activity has been unusually muted since Christmas with low spot volumes and volatility,” it wrote in its weekly report released on January 4. “The low volatility has manifested itself as a slow and steady decrease in the bitcoin price.”

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