Five reasons bitcoin had its worst quarter in more than a decade - Printable Version +- Ipoh Community Forums (https://forums.ipoh.com.my) +-- Forum: News and Current Affairs (https://forums.ipoh.com.my/forum-11.html) +--- Forum: International News (https://forums.ipoh.com.my/forum-13.html) +---- Forum: Business, Economy and Investment (https://forums.ipoh.com.my/forum-56.html) +---- Thread: Five reasons bitcoin had its worst quarter in more than a decade (/thread-5932.html)

Five reasons bitcoin had its worst quarter in more than a decade - superadmin - 07-02-2022 Bitcoin lost about 58% of value in the second quarter of 2022, posting its worst quarterly performance since 2011. Macroeconomic issues, such as rising interest rates and rampant inflation, led to a sell-off in stocks and filtered through to the cryptocurrency market. But the industry has also seen a wave of liquidity concerns, with hedge fund Three Arrows Capital going into liquidation and lending firm Celsius pausing withdrawals for customers. The quarter also saw the collapse of algorithmic stablecoin terraUSD which sent shockwaves through the industry. Bitcoin just had its worst quarter since 2011 and its worst month on record. The world’s largest cryptocurrency lost about 58% of value in the second quarter of 2022. Around $1.2 trillion has been wiped off the entire cryptocurrency market. Amid the chaos, crypto firms have announced layoffs and the industry is moving toward consolidation via acquisitions. Here are five flashpoints that hit the cryptocurrency industry last quarter. 1. Macroeconomic pressure During the quarter, the U.S. Federal Reserve carried out two aggressive interest rate hikes to battle rampant inflation. That has sparked fears of a recession in the U.S. and other countries. It has also hit stocks, in particular high-growth technology names. The tech-heavy Nasdaq Composite is down 22.4% for the second quarter, its worst quarterly performance since 2008. Bitcoin has been closely correlated to the price movement of U.S. stock indexes. The stock sell-off has weighed on bitcoin and the crypto market as investors dump risky assets. - More -