Bitcoin Sees Worst Quarter In 11 Years
July 01 2022 - 11:00AM
NEWSBTC
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. Related Reading | TA:
Ethereum Trims Gains, Why ETH Remains At Risk Below $1,100 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 Market’s 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. Related
Reading | Avalanche Might Continue Its Downtrend As Price Slips To
$16 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. Europe is not the only one. There are 103 countries
listed in November 2021 whose governments urged their financial
regulatory agencies to set legislation and policies for financial
institutions concerning cryptocurrency. Including France, Germany,
Japan, Mexico, and many others. Featured image from Flickr,
chart from Tradingview.com
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