### 2022 was a difficult year for crypto bulls, but it wasn’t necessarily a bad year per se. 

Markets are cyclical. There are ups and there are downs. Up isn’t necessarily good, and down isn’t necessarily bad. However, when things get as bad as they did in 2023, it’s hard to think of the big cyclical picture. Also, for crypto bulls, 2022 could very well have ripped their faces off. 

But, if we were to think logically and quiet down the emotions, these down years could present seasonably large and rare opportunities to load up on crypto at relatively low prices. 

Higher prices aren’t necessarily good. Market participation is buying and selling. If prices stay high constantly, buying becomes an increasingly challenging activity. In fact, if we recall the commonly shared sentiments during the bull markets, many people wish they had bought more at ‘lower prices’. Ironically, when the prices do come down, a lot of people get scared off and forget that they were not long ago wishing for ‘lower prices’. 

2022 was full of ‘black swans’. This term was overused, but certainly not intentionally. A black swan is defined as “an unpredictable or unforeseen event, typically one with extreme consequences.” (Dictionary.com) Earlier in 2022, the crash of Terra Luna was considered a black swan with crypto users unaware that the year will be full of even worse ‘black swans’: Celsius, Voyager, 3 Arrows Capital and the largest one of all FTX. 

The ripple effect of FTX is still not fully understood and will probably cause lingering pain throughout 2023. As it turned out, the whole year was one giant black swan for crypto. And, it as if things were not bad enough within the crypto industry, the macro economic environment was increasingly challenging. 

With inflation rampaging around the globe, central banks around the world started to tighten monetary policy. The strongest effort was put forth by the United States Federal Reserve which increased their Federal Funding rate at a pace never seen before. The ultimate effect was to put significant negative price pressure on risk assets around the globe - including crypto. 

The United States stock market did poorly in 2022 and was described by CNBC as [the worst year since 2008](https://www.cnbc.com/2022/12/29/stock-market-futures-open-to-close-news.html). 

Altcoins took the brunt of the crypto price carnage percentage-wise, giving more credibility to the all too often maligned bitcoin maximalists. While there are signs that BTC may have found a floor (although this is uncertain), it remains even more difficult to see whether altcoins are anywhere near finding a floor. 

Against the USD, crypto appears to be entering 2023 quite weak with altcoins looking extremely risky with a very poor risk return ratio. Entering 2023 with the current crypto and macro economic market conditions, the opportunity looks to be present for those interested in buying BTC at relatively low prices. 

The challenge is that there really is no certainty on whether BTC will still find a lower cycle bottom. But, based on the long-term trend of BTC the price appears low and the trend still appears to be moving up. Is this the beginning of a change in trend, or is it one the best buying opportunities we will see in a decade? 

Recall that BTC was launched after a pretty bad recession in the United States. Since that launch, there hasn’t been another similar recession. If the U.S. economy enters a similar type of recession as 2008, one could argue that BTC will start another run-up after this coming recession. 

Could it be that 2009-2021 was one cycle and that we are entering a new extremely bullish cycle? For us, the risk-reward is compelling. There is no certainty that BTC will perform as bullishly as that data indicates. However, if it does, the amount of potential reward makes a strong case to remain in the market (with sobriety). 

The important thing, we believe, is to not “bet the farm” or put in the life savings. We favor sustainable cost-averaging using cash flow from income (not financial advice). This is mainly because there is always a lot of risk in investments. The risk is both buying more than one can afford to lose but also in not having any BTC at all. BTC is not an asset that has potential to grow a little. It is an asset that has the potential to sustainably grow immensely over the long term. 

Will you keep BTC in your portfolio in 2023? Let us know in the comments! 

2022 was a difficult year for crypto bulls, but it wasn’t necessarily a bad year per se.

Mon Jan 02 2023

2022 Was Harsh for Crypto Bulls

Ferrari to Accept Crypto Payments in the US; Plans to Include Europe Underway

Prototype Global Cryptoasset Mapping System Developed

FTX Founder Sam Bankman-Fried Sent to Jail for Alleged Witness Tampering

Huobi Rocked by Reports of Executive Arrests and Accusations of Customer Fund Misuse

Breaking The Chains: Introducing BRC-69, The Bitcoin Standard Without Data Restrictions

Prototype Global Cryptoasset Mapping System Developed

Mon Jan 02 2023 2022 Was Harsh for Crypto Bulls

Ferrari to Accept Crypto Payments in the US; Plans to Include Europe Underway

Prototype Global Cryptoasset Mapping System Developed

FTX Founder Sam Bankman-Fried Sent to Jail for Alleged Witness Tampering

Huobi Rocked by Reports of Executive Arrests and Accusations of Customer Fund Misuse

Breaking The Chains: Introducing BRC-69, The Bitcoin Standard Without Data Restrictions

Prototype Global Cryptoasset Mapping System Developed

Mon Jan 02 2023

2022 Was Harsh for Crypto Bulls