Here’s what you can expect from Bitcoin and Ethereum in Q3 2022
Key insights:
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Bitcoin’s price saw a fall of almost 56% in the second quarter of 2022.
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The global crypto market value and most of the best cryptocurrencies have seen significant withdrawals and distance-limited courses over the past three months.
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Mostly stagnant futures and options markets and low trading volumes have been a constant bear market.
A long and cold winter in the crypto bear market has made the participants look at price charts to seek relief in the patterns. Top cryptocurrencies – bitcoin (BTC) and ether (ETH) have been remotely tied around their lower support levels for over a month.
This stagnation in the market has made investors and traders desperate for gains. When a new quarter of 2022 begins, the crucial question remains whether the crypto markets can chart an improvement at any time soon?
Another quarter, further losses?
Bitcoin’s price action in June was one of the worst monthly price performances in the history of the coin, with the BTC price down by almost 38% during the month. The long-term and short-term losses have driven out short-term holders and newcomers, leaving only the permanent HODLs.
Glassnode analysts pointed out in a recent report that last month’s price action from the top crypt only competed with the bear market in 2011 for the crown of the worst month ever. For a sense of scale, BTC prices were below $ 10 in 2011.
Bitcoin’s price consolidated over the past week, tackling the month’s loss, and maintaining a distance-bound momentum around the 2017 all-time high of $ 20,000.
Over the past week, the price has traded down to short midweek lows of $ 18,741, before rallying to close at $ 19,139 when the week ended. At the time of going to press, bitcoin was trading at $ 19,926, recording a 4.20% gain on the daily price window.
With the top asset trade, 71.20% lower from the highest price of $ 69,000 through the ages, the current price action is still maintained in the close higher $ 21,600 and lower $ 18,550.
Can Bitcoin and Ether losses follow?
Despite the fact that the new quarter took off, there were no positive changes in the larger sentiment in the market. In fact, to the surprise of many newcomers, analysts believed that bitcoin and ether could be ready for further losses in the coming weeks.
After six months, BTC and ETH were worse than a year ago. Both bitcoin and ether ended the second quarter of 2022 with negative quarterly gains as the macroeconomic environment in the financial markets deteriorated.
The Federal Reserve continued to raise interest rates while aiming to curb inflation; However, this approach seriously affected the growth and market value of risk assets such as crypto. With recession worries on the rise, cryptocurrencies could face a tough time ahead.
Japanese financial services giant Nomura revealed in a note on Monday that large economies could go into recession over the next 12 months, amid tight government policies and higher costs. Such recession stories have also sparked fear among investors and traders.
In particular, bitcoin saw a quarter-on-quarter loss of over 57%, while ether fell by more than 67% over the same period. If we look at the price action of the two top assets, it can be said that BTC and ETH can accelerate their losses during the quarter.
Historical price data show that in the previous bear markets in 2011, 2014 and 2018, BTC fell by 68%, 40% and 2.8% in the third quarter of the year. These data reflect that the third quarter has not always been pleasant for bitcoin and thus the larger market.
In the future, bitcoin and ether’s price performance and recovery will depend on macroeconomic conditions and strong hands in the market that can push the price towards improvement.
This article was originally posted on FX Empire
