Regulation
Bitcoin Drops 14% in Q2!
7h38 ▪ 3 minute read ▪ by Eddy S.
Bitcoin just went through a historically difficult quarter. For the first time since the third quarter of 2023, Bitcoin recorded a significant decline of 14% in the second quarter of 2024. This decline marks a turning point for the digital currency, which had reached unprecedented highs in March.
Bitcoin: A Volatile Quarter!
The last trading day of the quarter, June 28, continued the bearish trend with a decline of about 9% for June. This period was marked by the expiration of $6.6 billion in Bitcoin options! Adding further pressure to the market. Despite these challenges, Bitcoin has shown some resilience. It is consolidating above the $60,000 mark, only briefly falling below it twice.
Bitcoin’s recent decline can be attributed to several related factors. First, the Bitcoin network was saturated, struggling with a backlog of over 200,000 transactions. Subsequently, a dramatic drop in the price of Bitcoin to $62,500 led to the liquidation of 60,000 traders, exacerbating market volatility and undermining investor confidence. Finally, despite what seemed like good news, the price of BTC faltered due to the announcement of possible regulation. This may have raised concerns about the future of cryptocurrencies. These events created a climate of uncertainty, causing a chain reaction of selling and downward pressure on the price of Bitcoin.
However, it is important to note, as highlighted by Nickolas Hoog, VP Marketing at Bitmart:
Bitcoin’s price volatility reflects its growing pains as an emerging asset class. As the market matures, we expect these fluctuations to become less extreme.
Nickolas Hoog, VP of Marketing at BitMart
Uncertainty Looms Over Q3 2024
Historical data suggests a generally strong July for Bitcoin, with a slightly positive third quarter expected. However, September is traditionally bearishwhich could impact the overall performance of the following quarter.
This quarterly decline in Bitcoin raises questions about the long-term stability of cryptocurrencies and investor confidence. As the market continues to mature, investors need to remain cautious and informed. Because historical trends do not guarantee future performance. The future of BTC, while promising, remains uncertainand the last quarter serves as a cautious reminder.
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Eddy S.
The world has evolved and adapting is the best weapon to survive in this unpredictable universe. As a crypto community manager at the base, I am interested in everything that touches or approaches blockchain and its derivatives. With a view to sharing my experience and learning about a domain that fascinates me, rien de mieux who writes informative articles and is uncontracted at the time.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Do your own research before making any investment decisions.