There are arguments to be made for investing in stocks, cryptocurrency, or both. They can cater to specific investor needs, although their returns can differ significantly. For example, last year showed how traditional stocks, like Netflix (NFLX) were a much safer bet than Bitcoin. But will that trend change in 2023?
Netflix (NFLX) Lost 50% But Rebounded in 2022
Although the world has recovered from the COVID-19 pandemic for the most part, streaming services will remain incredibly popular. There are many exciting shows and movies to watch from the comfort of one’s home. Companies like Netflix, Hulu, Disney, and HBO compete for attention and eyeballs. Some will be more successful, and future mergers are still possible.
Such merger concerns will not affect Netflix, though, as the company continues to perform well. Despite losing subscribers in one quarter in 2022, its stock price has remained relatively stable since mid-April. Unfortunately, that stability came after the NFLX price tumbled from over $600 to under $250. Like other stocks, Netflix suffered badly from economic concerns plaguing the world.
It is worth noting the NFLX price went below $175 in late June 2022. Since then, it has recovered slightly and traded near $295 by December 31st. Overcoming price dips is essential in the financial world. Netflix stock did so admirably, whereas other companies struggled a lot more. Even so, one can’t deny that the NFLX stock lost over 50% of its value in 2022 and over 75% at one point.
The extensive benefit streaming services like Netflix have is how they are synonymous with content consumption in the modern age. Watching traditional TV is far less common than it used to be a decade ago. Streaming is the new norm, and many companies provide IPTV, bypassing the need for cable TV and decoders. In addition, ISPs that offer traditional decoder-based television often equip their hardware with apps like Netflix due to their popularity.
Bitcoin Had A Rougher Year
Like NFLX, the Bitcoin price went down a slippery slope in the first half of 2022. However, while Netflix found some price stability and eventually rebounded, Bitcoin kept plummeting. It is an unfortunate turn of events after the stellar 2021. During that year, the BTC price hit an all-time high of over $69,000. Such a value seems impossible to reach after 2022, although early 2023 offers reason for cautious optimism.
Even though Bitcoin traded above $47,000 in early January, it dipped below $20,000 in June. That was not the end of the downtrend, sadly. A temporary bottom was established below $15,800 in mid-November 2022. However, cryptocurrencies remain incredibly volatile even when stocks like NFLX rebound. As a result, overall interest in crypto assets has waned.
Various incidents have also plagued the industry. The FTX exchange’s collapse, the Terra ecosystem’s demise, and other various hacks, thefts, and scams cast a dark shadow over the industry. Consumer confidence and trust in Bitcoin and similar assets aren’t there anymore. Moreover, stocks like NFLX have proven to be resilient, even if they lost 50% of their value. Seeing what 2023 has in store for stocks and cryptocurrencies will be exciting.