The cryptocurrency market was brutal in Q2, with Bitcoin losing more than 10% of its value. The price of Bitcoin has been on a downward trend since the beginning of the year, showing no signs of slowing down anytime soon. Visit at: https://bitcoin-sprint.org/
The bitcoin rally from $20k at the start of the year to $11k today is an example of how much volatility there is in this market. It’s easy to think that an asset like bitcoin will always go up, but when you look at historical data, it becomes clear that many factors can influence price movements. Here we will explain why Bitcoin had its worst quarter in more than a decade.
Reasons why this crash is the worst
Bitcoin had its worst quarter in more than a decade in Q1 2019. The cryptocurrency, once considered one of the most stable assets, saw its price plummet by more than 80 percent within two days.
Bitcoin faced many challenges during the last quarter, including an increase in transaction fees and slow network speeds that led to lengthy transaction delays. The digital currency’s price also dropped from $6250 to $1900, which means it lost about 40 percent of its value since January 1st. According to experts, there are several reasons why bitcoin has been experiencing such a steep decline.
Bitcoin’s price decreased because of increased interest from traders looking at other cryptocurrencies like Ethereum and Ripple instead of Bitcoin. The popularity of cryptocurrencies has decreased because regulators have started cracking down on them. Here are some reasons;
- Mining difficulty will increase soon, which will result in fewer coins being mined.
- There are rumours that China will ban Bitcoin trading within their borders.
- The price of bitcoin fell from $20,000 to $7,200 in the first quarter of 2019.
- The number of new users registered to buy bitcoin fell by 60%.
- The number of new users registered to sell bitcoin rose by 65%.
- Bitcoin’s price fell 55% from its high in December 2018 to its low in February 2019.
- The price of bitcoin has fallen from its high of $20,000 in December to $5,700 today.
- Bitcoin is trading at a 2-year low of $4,000.Bitcoin is down nearly 50% from its all-time high on January 1st when it was valued at $19,783 per coin.
- Bitcoin’s total market value is less than half of what it was at its peak in January 2018 ($217 billion).
- Bitcoin costs more to transfer than ever before due to higher fees, but if you want to trade in bitcoin at low prices, there is bitcoin trading software available. You can buy and sell cryptocurrencies with lower feeses,
Macroeconomic pressure leading to bitcoin collapse
There are many reasons that bitcoin could have its worst quarter in more than a decade. The first and most apparent is macroeconomic pressure, the idea that the price of bitcoin will be affected by events beyond the currency itself. Many analysts believe the recent release of regulations on cryptocurrency exchanges, specifically the Chinese government’s crackdown on cryptocurrency trading, will cause bitcoin’s value to fall.
Investors are becoming increasingly wary of investment in cryptocurrencies, which means fewer traders are likely to buy or sell bitcoins. This could lead to a further decline in prices if more people decide to sell their holdings instead of holding onto them until they can get better returns elsewhere.”
Moreover, the TerraUSD collapse is a big deal. It’s not just the currency itself that has collapsed. It’s the entire economy of the planet.
The cryptocurrency market was already facing macroeconomic pressure, and when the U.S. government started tightening regulations on cryptocurrency exchanges, it made things even worse for bitcoin.
The price of Bitcoin has been falling for a few months now, and investors are also worried about potential regulations. The price of Bitcoin fell from $20,000 to $5,000 in just three months. This led to a drop in demand for cryptocurrencies, which resulted in a decrease in prices.
In addition, investors were also concerned about regulations that governments could impose on cryptocurrencies. This led them to move their money into fiat currencies such as USD or EUR instead of investing their money into cryptocurrency projects.