After a 2021 in which it reached impressive peaks (all-time high of over 67,000 dollars), Bitcoin is recording the worst quarter of the last 11 years: as of June 30, 2022, the most famous cryptocurrency in the world in fact recorded a resounding -56% compared to approximately $ 45,000 recorded at the beginning of the quarter.
It is the strongest decline Bitcoin has experienced since the third quarter of 2011, when the value of BTC went from $ 15.40 to $ 5.03, and it is worse than the bear markets that occurred in 2014 and 2018, which did mark a decrease of 39% and 49% respectively. In particular, in the month of June Bitcoin recorded a loss of over 37%, the heaviest monthly negative result since September 2011.
The cryptocurrency market has experienced specific turbulence linked in particular to the TerraUSD episode, but also to the uncertainties generated by their regulation (of which the MiCA is perhaps the most striking example). It is true, however, that all financial markets as a whole are going through a particularly difficult phase due to geopolitical instability and economic uncertainties, with the growth of abandonment and the increase in interest rates.
And, perhaps also for this reason, some signs indicate that cryptocurrency investors are staying cautious (or have run out of funds) during this bearish phase. Activity on the Bitcoin blockchain is in fact slowing with a 58% drop in the total volume of coins traded in just nine days.
Less investment and speculation activity also translates into lower commission collections for exchange platforms. And this, combined with the difficulties mentioned above, led several realities to the decision to reduce the staff. A symptomatic case is that of the well-known Coinbase exchange with the hiring block on June 2, together with the revocation of the job offer to almost 350 people, and for a cut of 1000 jobs on June 14. Bitpanda, a company that offers trading tools not only in cryptocurrency markets, also reduced its workforce by 277.
° BLOG ° Gabriele Romano 