The crypto market is in worse shape than it’s been in a long time. The market has seen its worst bloodbath in 11 years. Bitcoin’s quarterly returns haven’t been this bad since it traded under $20 on Mt. Gox in the early days. On the other hand, the stock market isn’t doing much better. Bitcoin whipped traders and went wild on Friday as digital assets struggled to regain footing after a record-breaking monthly decline.
Crypto falls to historic lows in 2022’s second quarter
Bitcoin’s price is on a bearish trend, despite two of the biggest BTC fans, MicroStrategy and El Salvador, buying the dip. Despite this, the crypto market appears to be heading down as BTC has created its sixth consecutive negative daily candle.
On 30 June 2022, BTC hit a low of $19K mid-month, from which it recovered only to lose it again moments later. In the coming days, lower prices may be expected. Furthermore, the weekend has negatively influenced Bitcoin and Altcoins in recent months. Will the trend continue during this weekend? If so, the crypto market is in trouble.
The price of bitcoin has tumbled 11 years’ worth of losses. The worst is yet to come, as the price and blockchain activity nosedive in the last three months. It’s the most significant drop since the third quarter of 2011 when BTC dropped from $15.40 to $5.03.
The price of Bitcoin fell by more than 67% from its all-time high to its lowest point in history. Worse still, this was a greater decline than the 2014 and 2018 bear markets. Bitcoin’s price dropped 39.7 percent during the quarter and 49.7 percent during the fourth quarter.
On Friday, the biggest cryptocurrency rallied 11.3%, briefly approaching the $21,000 mark. Bitcoin lost much of its gains following a global equity market selloff, trading at $19,410 in London at 7 a.m. on 19 June.
By late Wednesday evening, the U.S. Securities and Exchange Commission’s rejection of a bitcoin ETF application effectively squashed any chance for a quick rebound. The most valuable cryptocurrency by market capitalization was trading slightly above $19,000 as of press time, down 5.6% in the last 24 hours.
On the last day of the month, one of bitcoin’s many superlatives wasn’t much to shout about: Bitcoin’s worst six-month span on record occurred between January and June. In conventional markets, consumer spending slowed, causing investors to worry.
The stock market’s decline, which had been subsiding since mid-February, reignited worries about a recession as the Standard & Poor’s 500 Index was poised to suffer its worst first-half performance in decades.
During the bear market, there are indicators that investors have stored their investments dry or ran out of cash. Blockchain activity has taken a plunge, with Bitcoin’s spot volume down by more than 58.5 percent in just nine days.
El Salvadorans President adds more BTC in the crypto winter
El Salvador isn’t concerned about the potential dangers. Its president, Nayib Bukele, announced on Twitter that his country had once again bought into the Bitcoin selloff. During this bear market, Bukele revealed that his government purchased 80 bitcoins for around $19,000 each BTC. It’s the lowest price for Bitcoin since it became legal money in September 2021.
President Nayib Bukele of El Salvador, who has been a vocal supporter of Bitcoin, is maintaining his position. “Bitcoin is the future.” The president has been one of the few characters in the crypto space to show public support for Bitcoin. The most recent company to do so was MicroStrategy, which on 29 June paid $10 million for 480 BTC at an average price of $20,817.
On 9 May, El Salvador made its last Bitcoin purchase, buying 500 BTC. According to Bukele, the average price paid was $30,744 in a transaction worth approximately $15 million.
This time, El Salvador’s Nayib Bukele did not disclose the purchase amount, although the transaction was completed when Bitcoin hit $19,000 on 30 June. It appears that this time around, the Salvadoran government has spent roughly $1.5 million buying Bitcoin.
El Salvador currently has 2,381 Bitcoin in its reserves as a result of this purchase. These reserves were formed due to the bitcoin legalization in El Salvador in mid-2021 and are expected to cost around 100 million dollars.
El Salvador bought today 80 #BTC at $19,000 each!#Bitcoin is the future!
— Nayib Bukele (@nayibbukele) July 1, 2022
Thank you for selling cheappic.twitter.com/ZHwr0Ln1Ze
The apparent lack of direction is similar to how the coin traded in May, immediately after the TerraUSD stablecoin fell apart when it hovered near $30,000 for weeks before plummeting again.
Investors had lofty expectations for the year ahead, anticipating that by year’s end, Bitcoin’s most valuable cryptocurrency by market capitalization would reach $100,000. Experts in the crypto market have made favorable price forecasts for the top asset class, further boosting investor optimism.
However, things did not go as planned, with the world’s largest cryptocurrency losing a significant amount of its value since the start of the year. The frustration is reaching critical levels, and some crypto investors have entirely given up hope in the market.
