Bitcoin Has Its Worst Month On Record
Topics: Bitcoin, Cryptocurrency, Money
Niamh Spence
Featured Image Credit: Alamy
Topics: Bitcoin, Cryptocurrency, Money
It's been a tough run for Bitcoin and its investors who have seen their shares tank as the cryptocurrency had its worst month-ever on record.
The currency, which had been strong throughout Covid-19, dropped in value by 38 percent in June. This is added to the overall loss of 58 percent of its value in the second quarter of 2022, calculated at a loss of approximately $1.2 trillion in value across the total cryptocurrency market.
Last month, Bitcoin reportedly lost more than $7.3 billion, with value falling below $20,000 for the first time since 2020.
Advert
The drop was well documented with Bitcoin investors and financial analysts all seeing the sharp drop and watching finances tank. According to blockchain analytics provider Glassnode, over the course of the three days up to 19 June, around 555,000 bitcoins changed hands for prices ranging from $18,000 to $23,000.
The drop didn't just hit short-term investors. Long-term holders were also affected, liquidating around 178,000 Bitcoin at less than $23,000. As a result, many of those who sold suffered losses of up to 75 percent.
However it's not just Bitcoin that has had a challenging run recently. Ether, the world's second-biggest cryptocurrency, has also seen devaluation with prices down by roughly 47 percent.
In an interview with CNBC, Matt Hougan, who is chief investment officer at Bitwise Asset Management, explained: "There is still an aspect in crypto that we are waiting to see if another shoe will drop, if another entity will fail, if the credit cascade will continue.
"I think we have to get through the Fourth of July weekend and get through that quiet period in the market before we build in the second half of the year."
For those who are keen investors in cryptocurrency or have an interest in the market, highs and lows are nothing new. However, this has been the sharpest decline for Bitcoin on record. Analysts indicate the drop could be due to a reported 50 percent decline in the number of active crypto users from one million users in November 2021 to less than 500,000 in May 2022.
Other factors in the market including inflation have also been credited for the decline.
For those still keen to invest and prepared to wait long-term for the reward, Hougan explained it's a great time to enter the market. He said: "If your timeframe is a week, or a month, or even a quarter, I think there’s still significant volatility.
"If you have a time horizon measured in years, then yes, this is a great opportunity to think about entering the market."
If you have a story you want to tell, send it to UNILAD via [email protected]