Bitcoin Suffers it’s Worst Quarter for 11 Years

Bitcoin Worst Quarter

The world’s most famous cryptocurrency is enduring it’s worst quarter in 11 years as Bitcoins value and activity plummets.

The second quarter’s end saw Bitcoin’s price fall from around $45,000 at the start of the quarter to trade at $19,884 before midnight EST on Thursday, according to CoinGecko. This represents a 56.2% loss, according to crypto analytics platform Coinglass.

It’s the steepest price fall since the third quarter of 2011 when BTC fell from $15.40 to $5.03, a loss of over 67% and worse than the bear markets of 2014 and 2018 when Bitcoin’s price slumped 39.7% and 49.7% in their worst quarters respectively.

The past quarter saw eight weekly red candles in a row for Bitcoin and the month of June saw a drawdown of over 37%. This was the heaviest monthly losses since September 2011, which saw the price fall more than 38.5% in the month.

There are also signs that investors are keeping their powder dry — or they’ve run out of funds — during the bear market. Activity on the blockchain is taking a dive with Bitcoin’s spot volume — the total amount of coins transacting on the blockchain — dropped over 58.5% in just nine days, according to a Wednesda analysis from Arcane Research.

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But, it’s not just crypto markets in turmoil. Thanks to sky-high inflation and rising interest rates, the traditional stock market has also taken a pounding, with some calling it the “worst quarter ever” for stocks.

Charlie Bilello, CEO of financial advisory firm Compound Capital Advisors, shared a chart on Twitter showing the S&P 500 index was down 20.6% in the first half of 2022, the worst start to the year for the index since 1962 when price return was -26.5%.

The difficult economic conditions have seen a swath of staff layoffs from crypto companies including Gemini, Crypto.com and BlockFi. Most recently, the crypto and stock trading platform Bitpanda cut its employee count by approximately 277 full-time and part-time employees.

 

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