Bitcoin's Price Movement: Then vs Now

The last time that the price of Bitcoin had this much movement up and down was when the exchange site Mt. Gox collapsed, but the stock market was significantly worse by comparison.

The price and activity of Bitcoin (BTC) both fell over the last three months, causing its worst quarterly loss in 11 years.

The price of Bitcoin fell from $45,000 to $20,100 during the second quarter of 2019 as per Coinglass’s crypto analytics platform.

The fall in the price of Bitcoin is the steepest since the third quarter of 2011, when it fell from $15.40 to $5.03, a loss of over 67% and worse than the bear markets of 2014 and 2018, when its price slumped 39.7% and 49.7%, respectively, in their worst quarters.

The price of Bitcoin fell heavily in June, the heaviest monthly losses since September 2011.

In addition, there are indications that investors are keeping their funds in reserve or have run out of money during the bear market. The amount of coins transacting on the blockchain has dropped over 58.5% in just nine days according to an analysis from Arcane Research published on June 29  The spot volume — total number of coins transacting on the blockchain — is taking a dive as per a June 29 analysis from Arcane Research.

In addition to the crypto markets, the traditional stock market has also suffered. Faced with sky-high inflation and rising interest rates, some are calling it "the worst quarter ever" for stocks.

Charlie Bilello, CEO of Financial advisory firm Compound Capital Advisors, posted on Twitter a chart showing that the S&P 500 index fell 20.6% in the first half of 2022, which was the worst start to the year for that index since 1962 when price return was -26.5%.

Bitpanda, a crypto and stock trading platform, recently cut its employee count by 277 full-time and part-time employees. The difficult economic conditions have forced several other crypto companies to lay off staff including Gemini, and BlockFi.

The second quarter saw the NASDAQ composite index, which is heavily weighted by tech stocks, drop by 22.5 percent.

A TrueUp "Tech Layoff Tracker" found that over 26,000 tech employees lost their jobs at 200 companies in June alone.

Tech Layoff Tracker. Source: TrueUp
TrueUp's Tech Layoff Tracker.

Over the last three months, 307 layoffs affected over 52,000 employees with one of the most significant coming from Elon Musk's Tesla, which saw 3,500 workers lose their jobs. Crypto exchange Coinbase was also mentioned twice: first for its June 2 hiring freeze and rescission of job offers to 350 people and second for its June 14 staff reduction that affected 1,100 individuals.