Bitcoin Sees Worst Quarter In 11 Years

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The world’s leading cryptocurrency, Bitcoin (BTC), has seen its worst quarter fall in 11 years. According to data from CoinGeckoBTC lost more than 57.43% in the second quarter of 2022. Additionally, 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 as it approached $ 50,000. But after that, things became more complex, and the price continued to decline.

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From $ 45,524 earlier this year, bitcoin slipped to a low of $ 17,593.2 on June 18th. It recorded its worst quarter as a result of its persistently negative price moves, which saw it fall below $ 20,000 several times in June.

According to data from CoinGecko, BTC fell by 38% during 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 Paris wheel. As of Q2 2021, the second quarter of 2022 will be referred to as the “Most Bloody Quarter In Crypto. The 2nd quarter of last year lost more than 40% of its value.

Risk Concerns Due to the Declining Market Situation

After the news that the Federal Reserve is preparing to reduce liquidity in the financial markets, Bitcoin fell suddenly and the decline continued. Investors avoided riskier assets due to rising inflation and interest rates. As a result, the market lost huge profits.

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

Throughout the quarter, several major problems arose. For example, Celsius; recently, the company decided to suspend all account withdrawals, causing concerns that the business would soon go bankrupt.

CoinFlex cryptocurrency exchange also halted customer withdrawals on June 23, due to the severe market conditions.

CoinFlex CEO Mark Lamb declared:

Due to extreme market conditions last week and continued uncertainty involving counterparty, today we announce that we are pausing all withdrawals.

In addition, on the other hand, regulators have become increasingly concerned about the dangers of cryptocurrencies. Everyone is horrified by the recent failure of TerraUSD (UST) and the problems experienced by crypto lenders, including Celsius.

To address the potential threat that cryptocurrency assets may pose to the financial system, the European Systemic Risk Board (ESRB) has urged urgent regulation to resolve the situation.

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In report On June 30, the EU declared:

While possible ubiquitous implications stemming from these market segments currently seem limited, ubiquitous risks could be realized quickly and abruptly.

Europe is not the only one. There are 103 countries listed in November 2021, whose governments have urged their financial regulatory agencies to put in place legislation and policies for financial institutions on cryptocurrency. Including France, Germany, Japan, Mexico and many others.

                    Featured image from Flickr, chart from Tradingview.com

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