bitcoin on Thursday reported its worst quarterly loss in more than a decade.
According to CryptoCompare, the world’s largest cryptocurrency lost about 58% of its value in the second quarter of 2022. Bitcoin fell from $45,524 at the start of the quarter to trade just below $19,000 on Thursday, the final day of the three-month period, according to data from CoinDesk.
This is the worst quarterly result for bitcoin since the third quarter of 2011, when it lost 68.1% of its value.
According to Coin Metrics, bitcoin fell 39.8% in June, its worst month since it became available on exchanges in 2010.
Meanwhile, ether It was down 69.3% in the second quarter and is on track for its worst quarter on record since 2015, according to Coin Metrics.
Cryptocurrency prices came under intense pressure this quarter amid rampant inflation that forced central banks around the world to raise interest rates and led to a sell-off in risky assets such as stocks and digital coins.
The drop in prices has also exposed problems with several crypto companies and projects, especially those involved in lending and highly leveraged firms.
A number of important issues emerged during the quarter.
The latest downturn is described as a new “crypto winter” and has also affected growth and hiring in companies. Coinbase and BlockFiy announced plans to reduce staff.
Jacob Joseph, analyst at CryptoCompare, notes that in the previous boom-and-bust cycle, Bitcoin fell from a peak of $19,871 in Q4 2017 to a low of $3,170 in Q4 2018, suffering an 8% drawdown.
Joseph said a similar 82.2% drop was seen in 2014, when bitcoin fell from a high of $1,239 in the fourth quarter of 2013 to a low of $221 in the second quarter of 2015.
“This suggests that we may face a further period of drawdown if the current poor macroeconomic conditions persist,” Joseph told CNBC.
Other investors have expressed bearish sentiment. In May, Guggenheim Chief Investment Officer Scott Minerd said bitcoin could drop to $8,000. At the time, the cryptocurrency was trading at around $30,000, which means a 70% drop.
— Gina Francolla of CNBC contributed to this article.