Bitcoin (BTC) on track for its worst quarter in more than a decade

Bitcoin Will record the worst quarterly loss in more than 10 years.

According to CryptoCompare data, the world’s largest cryptocurrency lost about 58% of its value in the second quarter of 2022. Bitcoin fell from $ 45,524 at the beginning of the quarter and was trading at around $ 18,000 on Thursday, the last day of the three months, according to CoinDesk data.

This is the worst quarterly performance of Bitcoin since the third quarter of 2011, when it lost 68.1% of Bitcoin’s value.

Bitcoin fell 39.8% in June and is progressing at the worst monthly pace in history dating back to 2010 when it became available on the exchange, CoinMetrics data show.

in the meantime, ether According to Coin Metrics data, it was down 69.3% in the second quarter and is on track for the worst quarter on record, dating back to the start of 2015.

Cryptocurrency prices were under intense pressure this quarter amid a surge in inflation that led to the sale of risky assets such as stocks and digital coins as central banks around the world raised interest rates.

The price plunge also exposed the problems of several crypto companies and projects, especially those with lending space and leverage.

During the quarter, many issues that attracted attention were revealed.

The recent recession, described as the new “Cryptocurrency Winter”, is also impacting corporate growth and employment. Coinbase and BlockFi Announced plans to dismiss staff..

CryptoCompare research analyst Jacob Joseph said in the previous boom and bust cycle 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, 8%. Says he is suffering from a drawdown.

Joseph said a similar decline of 82.2% was seen in 2014 when 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 if the current poor macroeconomic situation continues, we may enter another drawdown period,” Joseph told CNBC.

Other investors have expressed bearishness. In May, Guggenheim Chief Investment Officer Scott Minard Bitcoin said it could go down to $ 8,000.. At that time, cryptocurrencies were trading for about $ 30,000. This corresponds to a 70% reduction.

CNBC’s Gina Francola contributed to this article.