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Bitcoin Sees Worst Quarter In 11 Years

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. 

Bitcoin is currently trading at $19131.45 on the daily chart | Source: BTC/USDT chart from Tradingview.com

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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Total Cryptocurrency Market Cap Value Surges Across $1.9 Trillion Setting A New Record

The bullish trend in the cryptocurrency market is tolling a remarkable route in the month of August. For the first time since May, the industry is recording a total market cap that is almost $2 trillion.

The data from CoinGecko, a crypto data aggregator, indicates that the total crypto market value crosses $1.9 trillion a few days ago. This was after the market hit the mark since May 18.

Related Reading | Coinbase Removes USD Coin (USDC)” Backed By Dollar” Statement

From July 19, the entire crypto market experienced a considerable surge that pushes the total market value to about $700 billion. Nevertheless, the market is yet to attain its all-time high as of May 11. The value shows a deficit of about $700 billion from its peak of $2.5 trillion.

Other Cryptocurrency Assets Reacting To The New Market Trend

In the recent recovery trend in the industry, prominent digital assets such as Bitcoin (BTC) and Ether (ETH) are not left out. As a result, these cryptocurrencies have explored their mid-May market cap levels again.

As of Monday, Bitcoin records a market value of over $860 billion. CoinGecko reveals that it’s the first time since May 16 for BTC to hit such a limit. The cryptocurrency experienced a main sell-off earlier in the year. This was after Bitcoin became a $1 trillion asset.

However, the sell-off triggered the plummeting of the market cap to $560 billion by July 20. The recent rebounce of the BTC price over $45,000 brought over a 53% increase to its market value.

Similarly, the global second-largest digital asset by market cap, Ether, is not left out. The cryptocurrency accrued more gains in July since the bear market. The asset had almost an 81% increase from its July 20th value of  $204 billion to $369 billion.

After an incredible last week, the crypto market has taken a slight dip | Source: Crypto Total Market Cap on TradingView.com

On Thursday, the digital asset passed through a prominent network upgrade. The Ether price moved by 50% in response to the London hard fork. This displays investors’ anticipation of getting solutions to Ethereum’s high transaction fees through the upgrade.

Though the crypto market experienced a recent positive turning, some key cryptocurrencies somersaulted in their market cap value.

For instance, Binance USD (BUSD), a top-ranking stablecoin by market value after Tether (USDT) and USD Coin (USDC), had a drop.

 

Total cryptocurrency market cap 90-day chart

As listed on Thursday, BUSD couldn’t make it among the top 10 most-valued digital assets. UNI, Uniswap’s governance token, dethroned BUSD from the list. This left BUSD as the 11th-largest cryptocurrency with a market cap of $12 billion.

Related Reading | Lionel Messi To Get Paid In Crypto For Joining Paris Saint Germain

Recall that this recent growth trend in crypto market value occurs after Elon Musk, the CEO of Tesla, revealed debt to Bitcoin. Musk mentioned on July 22 that SpaceX, his aerospace firm, is indebted to Bitcoin. Furthermore, he announced Tesla’s plan to recommence its acceptance of crypto payments for purchases.

Musk explains that this decision was due to the remarkable drop in the percentage of fossil fuel used for Bitcoin mining. It alleged that the previous decision of the CEO in suspending BTC payment to his company was the main contributory factor to the May Bitcoin’s price crash.

Featured image from Pixabay, chart from TradingView.com