Bitcoin registers its worst quarter in 11 years amid crypto market tumult

Quick Take

  • The leading cryptocurrency by market cap had its worst quarterly loss in 11 years amid the crypto market downturn.
  • The 56% drop in the second quarter was its worst since the third quarter of 2011.

Bitcoin registered its worst decline in 11 years during the second quarter amid the crypto market downturn.

Following the turbulence of May and June, the 56% drop was its worst quarterly drawdown since the third quarter of 2011.

At the time of writing, bitcoin was trading hands at $19,452 according to data via CoinGecko. Bitcoin had been hovering on either side of $19,000 on Thursday, before recovering slightly to gain 1.9% over the past 24 hours.

The quarterly loss comes as multiple crises have played out across financial markets. In June, crypto lenders Celsius and BlockFi came under persistent scrutiny following the former’s decision to halt withdrawals for customers and speculation that the latter was set to be acquired at a cut-rate price by FTX. 

Contagion has spread across the markets, with crypto hedge fund Three Arrows Capital now facing liquidation in the British Virgin Islands after the Eastern Caribbean Supreme Court appointed Teneo to handle the proceedings. This contagion risk hasn't completely played out yet, Eli Ndinga, director of research at 21Shares, said on an analysts call on Wednesday.

Meanwhile, traditional financial markets have been rattled over the past month as inflation increases and central banks around the world raise interest rates. Furthermore, the Atlanta Fed revised its projections for the second quarter this week, predicting negative growth for the second consecutive quarter — implying that the US may be in a recession.

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