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Bitcoin Sees Worst Quarter In 11 Years

WikiBit 2022-07-02 09:43

Abstract:The leading cryptocurrency in the world, Bitcoin (BTC), saw its worst quarter-over-quarter drop in 11 years.

  The leading cryptocurrency in the world, Bitcoin (BTC), saw its worst quarter-over-quarter drop in 11 years. According to data from CoinGecko, BTC has lost over 57.43% in the second quarter of 2022. Additionally, by selling below $19,000 on the final day of Q2, Bitcoin had its most significant quarterly loss in more than a decade.

  The current state of the Bitcoin market is not good. The position was favorable even at the end of Q1 when it was approaching close to $50,000. But after that, things became more complex, and the price kept dropping.

  From $45,524 at the beginning of the year, bitcoin slid to a low of $17,593.2 on June 18. It recorded its worst-performing quarter as a result of its persistently negative price moves, which have seen it drop below $20,000 several times in June.

  According to CoinGecko data, BTC dropped by 38% over the month of June and is currently trading at $19,447.62.

  Since its launch in January 2009, the price of bitcoin has been on an up-and-down Ferris wheel. Like Q2 2021, the second quarter of 2022 will be referred to as the Bloodiest Quarter In Crypto. Quarter 2 of last year lost more than 40% of its value.

  Concerns About Risks Due To Markets Downturn Situation

  After the news that the Federal Reserve is preparing to reduce liquidity in the financial markets, Bitcoin fell precipitously and the downturn continued. Investors avoided riskier assets because of rising inflation and interest rates. As a result, the market lost huge profits.

  Throughout the quarter, several significant problems have surfaced. For example, Celsius; recently, the firm decided to halt all account withdrawals, raising concerns that the business would soon go bankrupt.

  Cryptocurrency exchange CoinFlex also stopped customer withdrawals on June 23, due to the harsh market conditions.CEO of CoinFlex, Mark Lamb stated: Due to extreme market conditions last week & continued uncertainty involving a counterparty, today we are announcing that we are pausing all withdrawals.

  Moreover, on the other hand, regulators have become ever more concerned about cryptocurrencies hazards. Everyone is terrified due to the recent failure of TerraUSD (UST) and the issues experienced by crypto lenders, including Celsius.

  In order to address the possible threat that crypto-assets can bring to the financial system, the European Systemic Risk Board (ESRB) urged urgent regulation to solve the situation.In a report on June 30, the EU stated:While potential systemic implications stemming from these market segments currently seem limited, systemic risks could materialise quickly and suddenly.

  Goldman Sachs analysts believe Bitcoin and the crypto market could see some relief, but only further short and mid-term turmoil. A recent report from the banking institutions claims the crypto market has been moving in tandem with the U.S. stock market and thus it has been affected by the macro-economic environment.

  Deutsche Banks senior economist and market strategist Marion Laboure and research analyst Galina Pozdnyakova released a report, estimating the price of Bitcoin to reach $28,000 by the end of the year.The analysts mentioned that cryptos have been correlated to benchmarks like the Nasdaq 100 and the S&P 500 since November, expecting the indices to recover to January levels by the end of the year. However, the analysts also noted that the crypto free fall could continue because of the systems complexity.

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