Categories: Crypto NewsNews

Bitcoin endured its worst quarter in 11 years, due to market instability

Published by
Nonhlanhla P Dube

During the second quarter, Bitcoin had its greatest drop in 11 years due to the crypto market collapse.

Following the turmoil of May and June, the 56 % dip was its’s largest quarterly loss since the third quarter of 2011.

According to CoinGecko data, bitcoin was trading hands at R319K at the time of writing. On Thursday, Bitcoin was trading just above R312K before recovering somewhat to gain 1.9 % in the last 24 hours.

The quarterly loss comes amid a series of crises in financial markets. In June, crypto lenders Celsius and BlockFi came under intense scrutiny following the former’s decision to suspend customer withdrawals and rumours that the latter was due to be acquired at a discount by FTX.

The crypto hedge fund Three Arrows Capital is now facing liquidation in the British Virgin Islands after the Eastern Caribbean Supreme Court hired Teneo to oversee the proceedings. This contagion danger hasn’t yet been fully realized, according to Eli Ndinga, director of research at 21Shares, during an analyst call on Wednesday.

Meanwhile, traditional financial markets have been shaken in recent months as inflation has risen and central banks around the world have raised interest rates. Furthermore, the Atlanta Fed altered its second-quarter forecasts this week, expecting negative growth for the second quarter in a row, meaning that the United States may be in a recession.

Share
Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at nonhlanhla@rateweb.co.za

Published by
Nonhlanhla P Dube
%%footer%%