Bitcoin (BTC) recorded its most drastic quarterly decline in 11 years as the price of the market’s top cryptocurrency plunged by about 56.27% between April and June, according to data from blockchain analytics firm Skew.
After a relatively calm first quarter of 2022, which saw bitcoin fall by just 1.46%, the largest cryptocurrency plummeted from above $45,000 in early April to below $20,000 on June 30 — arriving less than US$ 18 thousand in that period.
Right now, bitcoin is priced at $19,196, up 0.5% over the past 24 hours, according to website CoinMarketCap.
It was the worst quarterly performance since Q3 2011, when bitcoin fell by 66.62% — from $15.40 to $5.14% — which was also worse than the drastic declines recorded in the first and fourth quarters. quarters of 2018, when BTC lost 49.89% and 42.54% respectively.
The latest market crash came amid a cascade of dramatic events, such as the collapse of the Terra ecosystem in May and the liquidity crisis faced by some crypto lenders and hedge funds, including Celsius and Three Arrows Capital (or 3AC).
As the total market capitalization of all cryptocurrencies fell below $1 trillion in June, many large companies also announced that they would be laying off some of their employees or reducing their operations.
They include crypto exchanges Coinbase, Gemini, Crypto.com and Bitso, lender BlockFi, as well as leading European crypto exchange Bitpanda.
Stocks fall along with bitcoin
Geopolitical tensions, growing uncertainty in global financial markets and the US Federal Reserve’s move to raise interest rates by 0.75% — the highest in 28 years — have also put further pressure on traditional equity markets.
At market close on Thursday (30), the Nasdaq Composite index, which focuses on technology stocks, was down more than 30% since the beginning of the year; the S&P 500 is down 21%; and the Dow Jones Industrial Average dropped 15.88% over that period.
Still, it is not all doom and gloom in the crypto sector, as some major players such as exchanges Binance, FTX and Kraken have confirmed their plans to hire new talent.
Others, like Michael Saylor of MicroStrategy and Salvadoran President Nayib Bukele, took the opportunity to buy on the dip, adding more bitcoin to their stash.
This week, MicroStrategy said it acquired an additional 480 BTC for approximately $10 million at an average price of $20,817 per coin while El Salvador announced it had purchased 80 BTC at $19,000 each.
*Translated by Daniela Pereira do Nascimento with permission from decrypt.co.