Bitcoin's Worst Quarter Yet: Prices Sink Below $20K
After January's brutal losses, prices have continued to sink as Bitcoin ends the worst quarter in ten years with monthly candles below $20K and trading around it.
Another week of losses and volatility has passed for the crypto market, which has lost around $50 billion in total capitalization. Bitcoin ended its worst quarter in a decade, while altcoins continue to bleed out. Let’s break down.
A week ago, Bitcoin was worth around $21K and spent most of the time since then at that level. It started to fall on June 28th and reached under $19,000 by Friday.
The end of the quarter is also significant because it's when this month's candle closed. As many expected, this led to serious volatility and BTC's price shot up to $21K but it failed to sustain and is once again below the critical level of $20,000 - the previous all-time high from last year’s bull cycle. At the end of Q1, Bitcoin closed below $20K and posted its worst quarterly performance in a decade.
Bitcoin was not the only coin that failed to see a recovery. In fact, its dominance - the measure of its share relative to the entire market - remained roughly the same. This means that altcoins failed to capitalize and also recorded similar declines compared to BTC. For instance, ETH is down 8.5% over the past seven days - just like BTC. Similar drops can be seen in BNB, XRP, ADA, LTC and others as well
As the market deleverages, major lenders are experiencing turmoil. In this regard, multiple reports suggested that FTX is getting close to a deal to buy BlockFi for $25 million. It's worth noting that BlockFi was previously raising capital at a whopping $5 billion valuation, implying major discounts for FTX if the deal is legitimate. Zac Prince - founder and CEO of BlockFi - denied the possibility of them selling for $25M, but speculations continue to run rampant and another bidder - Ledn - has also joined the acquisition race.
The buyer with the highest apparent conviction - Michael Saylor's MicroStrategy - acquired BTC worth $10 million at an average price of $20.8K. Nayib Bukele, the President of El Salvador, also said that they bought some 80BTC at $19K.
That is for sure. We are in for quite the ride, and it's exciting to see what next week has in store.
As of October 2018, the total market capitalization was $902B, the 24-hour volume was $99B and Bitcoin's dominance was 40.9%.
As of Input
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Graphs are a way of displaying data.
This week, we have a price analysis of Ethereum, Cardano, Solana, Polkadot and Polygon - click here for the full analysis.