Bitcoin (BTC) posted its worst quarter in more than a decade
Bitcoin on Thursday posted its worst quarterly loss in more than a decade.
The world’s largest cryptocurrency has lost around 58% of its value in the second quarter of 2022, according to data from CryptoCompare. Bitcoin fell from $ 45,524 at the beginning of the quarter and traded just under $ 19,000 on Thursday, the last day of the three-month period.
This is the worst quarterly result for bitcoin since the third quarter of 2011, when it lost 68.2% of its value.
Bitcoin is down 39.8% in June and is in line with the worst month ever, all the way back to 2010 when it became available on stock exchanges, Coin Metrics data shows.
Meanwhile, ether is down 69.3% in the second quarter and is heading for the worst quarter ever, dating back to the beginning of 2015, according to Coin Metrics data.
Coin collapse, 3AC liquidation
Cryptocurrency prices have come under intense pressure this quarter amid fierce inflation that has led central banks around the world to raise interest rates and lead to a sale of risk assets, such as equities and digital coins.
The crash in prices has also revealed problems with a number of cryptocurrency companies and projects, especially those in the lending area and companies that are heavily leveraged.
A number of high-profile cases have emerged during the quarter.
The recent downturn is described as a new “crypto winter” and has also affected growth and employment in companies. Coinbase and BlockFi announced plans to lay off employees.
How does this cycle compare to the past?
Jacob Joseph, research analyst at CryptoCompare, notes that bitcoin fell from a peak of $ 19,871 in the fourth quarter of 2017 to a low of $ 3,170 in the fourth quarter of 2018 in the previous boom and bust cycle, with a decline of 8%.
Joseph said a similar fall of 82.2% was seen in 2014 as bitcoin fell from a high of $ 1,239 in the fourth quarter of 2013 to a low of $ 221 in the second quarter of 2015.
“This suggests that we may be in for a further downturn if the current bad macroeconomic conditions continue,” Joseph told CNBC.
Other investors have expressed bearishness. In May, Guggenheim Chief Investment Officer Scott Minerd said bitcoin could fall to $ 8,000. At the time, the cryptocurrency was trading at around $ 30,000, a 70% drop.
– CNBC’s Gina Francolla contributed to this article.
