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Bitcoin Tanks 70 Percent Since November High

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Bitcoin on Thursday closed out one of its worst quarters ever, losing 60% from April to June. Since its November high, the coin had lost 70% of its value through Friday. According to Arcane Research, Bitcoin spot trading activity has decreased “substantially” in this environment.

CryptoCompare reports that assets under management for crypto investment products fell more than 50% in June, bringing the total to $1.3 billion. ETFs experienced the largest declines of more than 50%.

The price of bitcoin rose 2.9% on Tuesday morning in Europe to surpass $20,000 for the first time.

As usual, the Fed was behind the downturn: raising interest rates to tame inflation, despite the consequences; a selloff across multiple asset classes; and a growing list of crypto firms, lenders, and hedge funds.

Major meltdowns

According to Pantera Capital’s Dan Morehead, there are likely to be more “major meltdowns” in the near future.

Investment-strategy analyst Ross Mayfield of Baird says that much of the pain has already been absorbed by crypto, or at the very least Bitcoin. Despite that, “the Fed will keep raising interest rates in the near term, and if we enter a recession, there won’t be as much appetite for highly risky and speculative assets,” he added.

In the future, it will definitely face a challenging environment, Mayfield stated.

According to Arcane Research, on-chain activity increases during bull markets and further during market crashes as participants scramble to offload their positions. If it stabilizes at a low level, it tends to drop in price when its activity concurrently drops.

Jaran Mellerud wrote in a note that we seem to be entering such a period right now. In the midst of the crypto winter, the Bitcoin blockchain has gone into hibernation.”

Luna foundation dumped 80,000 Bitcoins

During bear markets, Brett Munster at Blockforce Capital points out that coins are typically taken out of cold storage and deposited back onto exchanges. This can indicate a desire to sell. Currently, that isn’t the case.

The Luna foundation dumped 80,000 coins on the market when they failed to defend UST’s peg. However, we continue to see a steady flow of Bitcoin removed from exchanges and accumulated for the long term, Munster said.

Furthermore, the number of wallets with non-zero amounts of Bitcoin has been growing.

According to him, adoption has not slowed down since the price crash of 2018, when bitcoin demand dropped. In spite of bitcoin’s recent price crash, its fundamentals are perhaps stronger than they have ever been.”

The CTNNews editorial team comprises seasoned journalists and writers dedicated to delivering accurate, timely news coverage. They possess a deep understanding of current events, ensuring insightful analysis. With their expertise, the team crafts compelling stories that resonate with readers, keeping them informed on global happenings.

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