
December 2022 Bitcoin Brief
Bitcoin ended 2022 down over 60%, which ranks as bitcoin’s second worst performing calendar year since the asset began trading in 2009.
Rising energy costs and falling bitcoin prices have negatively impacted mining economics. Coupled with a higher cost of capital, lower miner revenues have led miners to sell accumulated balances to fund their operations. Miners are typically long bitcoin as a result of the mining process, whereby the reward for confirming transaction blocks includes newly minted bitcoins, the “block subsidy,” and transaction fees. Together, these are known as the “block reward.”
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Bitcoin ended 2022 down over 60%, which ranks as bitcoin’s second worst performing calendar year since the asset began trading in 2009.
Bitcoin ended September at ~$19.5K and delivered stronger performance for the quarter (+3%) than U.S. equities and bonds, with the S&P 500 Index and Bloomberg U.S. Aggregate Total Return Bond Index both down 5%.
We look back at the third quarter of 2022 and the news that shaped it as well as important events in the future.
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