Bitcoin (BTC), which is the largest cryptocurrency globally, suffered its biggest quarter-overquarter fall in eleven years. Source: CoinGeckoBTC’s second quarter loss of 57.43% was more than 57%. Bitcoin suffered the largest quarterly loss of any cryptocurrency in over a decade when it sold below $19,000 for Q2.
Unfortunately, the current situation in Bitcoin is very bad. At the close of Q1, Bitcoin was at $55,000. However, the situation became complicated and the price continued to drop.
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The bitcoin price dropped to $17.593.2 in June 18 from $45,524 the previous year. Due to its negative price movements, bitcoin recorded the worst quarter in its history. It has fallen below $20,000 multiple times during June.
CoinGecko data indicates that BTC has dropped 38% in the last month of June, and it is now trading at $19 447.62
The price of bitcoin has fluctuated since its January 2009 launch. Like Q2 2021, the second quarter of 2022 will be referred to as the “Bloodiest Quarter In Crypto. Quarter 2 last year saw its value drop by more than 40%.
Concerns About Risks Due To Market’s Downturn Situation
Bitcoin plunged precipitously following the announcement that the Federal Reserve was reducing liquidity in the financial market. The recession continued. Increasing inflation and rising interest rates meant that investors avoided more risky assets. The market suffered huge losses as a result.
There have been several major problems throughout this quarter. Celsius is one example. Recently, Celsius stopped all withdrawals from its accounts, raising concern that it could soon become bankrupt.
Due to market conditions, CoinFlex stopped customers from withdrawing on June 23.
Mark Lamb, CEO at CoinFlex :
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. Due to TerraUSD’s recent collapse (UST), and other issues that crypto lenders have had, everyone is scared.
European Systemic Risk Board, (ESRB), urged the urgent adoption of regulation in order to combat the threat crypto-assets may pose to the financial systems.
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In a Report The EU announced:
These market segments may have limited potential for systemic impacts, but systemic risk could emerge quickly.
Europe isn’t the only place. In November 2021, there were 103 countries whose governments asked their financial regulators to create legislation and policies regarding cryptocurrency. France, Germany and Mexico are just a few of the countries that have embraced cryptocurrency.
Featured image taken from Flickr. Chart taken from Tradingview.com