Bitcoin just had a historically tough quarter. For the first time since the third quarter of 2023, Bitcoin saw a significant decline of 14% in the second quarter of 2024. The decline marks a turning point for the digital currency, which reached all-time highs in March.
Bitcoin: a quarter marked by volatility!
The last trading day of the quarter, June 28, confirmed the downward trend with a drop of around 9% for the month of June. This period was marked by the expiration of $6.6 billion worth of Bitcoin options! This increases the pressure on the market. Despite these challenges, Bitcoin has shown some resilience. It is consolidating above the $60,000 mark, only briefly and falling twice.
Bitcoin’s recent decline can be attributed to several interrelated factors. First, the Bitcoin network was saturated, struggling with a transaction backlog of over 200,000. Then, the dramatic fall in the price of Bitcoin to $62,500 caused the liquidation of 60,000 traders, exacerbating market volatility and undermining investor confidence. Finally, despite what appears to be good news, the price of BTC fluctuated due to the announcement of possible regulation. Which may have raised concerns about the future of cryptocurrencies. These events created an atmosphere of uncertainty, leading to a chain reaction of selling and downward pressure on the price of Bitcoin.
However, it is important to note that as Nickolas Hoog, Vice President of Marketing at BitMart points out:
Bitcoin’s price volatility reflects its growing difficulties as an emerging asset class. As the market matures, we expect these swings to become less extreme.
Nickolas Hoog, Vice President of Marketing at BitMart
Uncertainty hovers over the third quarter of 2024
Historical data suggests a generally strong July for Bitcoin, with a slightly positive third quarter expected. However, September is traditionally a bearish month, which could affect the overall performance of the next quarter.
Bitcoin’s quarterly decline raises questions about the cryptocurrency’s long-term stability and investor confidence. As the market is still maturing, investors should remain cautious and informed. Because historical trends do not guarantee future performance. BTC’s future, while promising, remains uncertain, and this past quarter is a cautious reminder of that.
The world is evolving and adaptation is the best weapon to survive in this wavy universe. Essentially a crypto community manager, I am interested in anything directly or indirectly related to blockchain and its derivatives. To share my experiences and raise awareness of a field that fascinates me, there is nothing better than writing articles that are both informative and relaxing.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.