The recent price drop for Bitcoin has been especially steep, with its quarterly returns hitting their lowest value in over ten years. The crypto market as a whole is also doing quite badly right now – it’s just another sign that things are getting pretty bearish out there.
Bitcoin was down 56% during the second quarter of 2022. The price dipped below crucial support and is currently struggling to stay above $20,000. The flagship crypto lost its value by 1.46% during the first quarter of 2022 after enjoying a highly profitable end to last year with returns of 168.78%.
In Bitcoin’s brief history, other notable quarterly losses occurred during 2021 Q2 at 40.37% and 2018 Q1 at 49.89%. Bitcoin’s current performance is a shadow of previously profitable quarters that hit a record 210.13% in the fourth quarter of 2017.
Bitcoin Struggles Around $20,000
The price of Bitcoin fell during the second quarter, dropping from about $45,000 at its beginning to slightly above $19,000. The crypto market has been on quite the losing streak, with $2 trillion worth of capital flowing out.
As of the time of writing, bitcoin is trading at $19,400 and had made gains of about 2% in the last 24 hours.
A few experts have shared their predictions about where things are headed next. According to Will Clemente:
“Bitcoin’s Q2 quarterly candle is in the books as the worst in its history. What a beauty.”
Bitcoin’s Q2 quarterly candle is in the books, the worst in its history. What a beauty. pic.twitter.com/EhenWiH1jz
— Will Clemente (@WClementeIII) July 1, 2022
Triggers of Bitcoin correction
The Federal Reserve has been pushing for high-interest rates, which is unfavorable news for those invested in cryptocurrencies. Notably, Bitcoin has suffered alongside risky assets like stocks as fears of a recession spread. Although the equities also feel pressure from this trend and show increased correlation with one another for now.
Crypto-related businesses are facing a difficult time as the economic period results in most companies adjusting their business models, with Coinbase resorting to layoffs and hiring freezes.
The recent Terra (LUNA) ecosystem collapse accelerated Bitcoin’s losses. The controversy triggered a sell-off of Bitcoin that has now caused it to lose key support at $30,000. Analysts project the correction might slide further near $10,000.
Analysts are split on whether or not the current bear market is bottoming out, but there’s a chance that we could see prices go up in the coming weeks.