The price of flagship cryptocurrency Bitcoin ($BTC) posted its worst quarterly performance in more than a decade, as in the second quarter of this year it lost around 58% of its value, falling from $45,524 to just under $19,000 at the end of the three-month period.
According to data from CryptoCompare, as first reported by CNBC, bitcoin posted its worst quarterly performance since 2011, when it lost 68.1% of its value in the third quarter of that year. At the time, the price of the cryptocurrency plunged after in June 2011 its largest exchange, Mt. Gox, experienced its first hack. At the time, BTC even dropped to $0.01.
Bitcoin is down almost 40% for the month of June, which was its worst month since 2010 when it first became available on cryptocurrency exchanges.
Ethereum’s ether, the second-largest cryptocurrency by market cap, lost more than 69% of its value in the second quarter of this year, making it the worst quarter on record for the cryptocurrency since its launch. launch in 2015.
The ongoing bear market in the cryptocurrency space has seen the price of BTC fall from around $69,000 in November 2021 to around $19,000 at the time of writing, amid risk on markets, driven by fears of inflation, interest rate hikes and the war in Ukraine. .
The fall in cryptocurrency prices also revealed that several companies in the space were heavily indebted. In May, TerraUSD ($UST), an algorithmic stablecoin in the Terra network, crashed along with its sister token LUNA, wiping billions from the market.
In June, embattled crypto lending firm Celsius Network froze withdrawals for customers due to “extreme market conditions,” with rival lender Babel Finance and crypto exchange CoinFLEX freezing withdrawals soon after.
Additionally, crypto hedge fund Three Arrows Capital went into liquidation following a court ruling in the British Virgin Islands after creditors sued the fund for its failure to repay debts.
The downturn in the cryptocurrency market has forced some companies to lay off some of their staff, including Coinbase and BlockFi. Sam Bankman-Fried’s Alameda Research stepped in to stop the contagion with lines of credit for BlockFi and crypto broker Voyager Digital.
A research analyst at CryptoCompare, Jacob Joseph, has been quoted as saying that previous boom and bust cycles have seen BTC fall by more than 80%, which “suggests that e may be in for another pullback period. if the current poor macroeconomic conditions continue to persist”.
According to the latest edition of CryptoCompare Research’s “Digital Asset Management Review”, in June, a Bitcoin ETP’s assets under management (AUM) managed to hit an all-time high despite the current crypto bear market.
The 21Shares Short Bitcoin ETP (SBTC), which “seeks to provide a -1x return on the performance of Bitcoin for a single day,” posted a 30-day return of 30.8% according to CryptoCompare, making it the third month in a row that the product’s assets under management grew, hitting a new all-time high of $16.5 million this month.
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