BITCOIN BTC IS FACING ITS WORST QUARTERLY LOSS IN THE 11 YEARS
Bitcoin (BTC) has seen its worst quarter loss in 11 years in terms of value and blockchain activity both declining over the past three months.
The second quarter ending June 30 saw the price of Bitcoin drop from about $ 45,000 at the beginning of the quarter to trading at $ 19,884 before midnight ET on June 30 according to CoinGecko, showing a loss of 56.2% according to the crypto Coinglass analytics platform.
A sharp price fall from the third quarter of 2011, when BTC dropped from $ 15.40 to $ 5.03, losses of more than 67% and worse than the bear markets of 2014 and 2018, when the price of Bitcoin fell 39.7% and 49.7% in their worst areas. respectively.
The previous quarter saw eight consecutive weekly candles in Bitcoin and the month of June dropped to more than 37%, the biggest monthly loss since September 2011 causing the price to drop more than 38.5% per month.
There are also signs that investors are keeping their powder dry - or running out of money - during the bear season. Activity on the blockchain goes by the local volume of Bitcoin - the total number of coins running on the blockchain - dropped by more than 58.5% in just nine days, according to a June 29 analysis from Arcane Research.
But it is not just the crypto markets that are in turmoil. Due to skyrocketing inflation and rising interest rates the common stock market has also grown exponentially, with some calling it the “worst quarter ever” of stocks.
Charlie Bilello, CEO of financial advisory firm Compound Capital Advisors shared a chart on Twitter showing that the S&P 500 index fell by 20.6% in the first half of 2022, the worst annual start of the year since 1962, when price inflation at -26.5%.
Difficult economic conditions have seen dozens of employees laid off at crypto companies including Gemini, Crypto.com and BlockFi. Recently crypto and stock exchange Bitpanda reduced its number of employees by about 277 full-time and part-time employees.
Crypto is very close to the broader tech sector and the tech heavy NASDAQ composite index fell by almost 22.5% in the second quarter.
A “Tech Layoff Tracker” from the technical services board TrueUp unveiled more than 26,000 technology employees at 200 declining companies in June alone.
In a quarter, 307 layoffs affected more than 52,000 employees and the largest one from Elon Musk's Tesla, with 3,500 XNUMX affected. Crypto exchange Coinbase doubles, first on its June 2 hiring and withdrawal of a job offer of about 350 people and second on the retrenchment of workers on June 14, affecting 1,100 people.