Currently, the price of Bitcoin is trading below US$20k, but a mere 26,000 addresses contain BTC holdings.
Bitcoin (BTC) has lost around 58% of its value in the second quarter of 2022, its worst quarterly loss in more than a decade. According to crypto experts, this is the worst quarterly performance for bitcoin since the third quarter of 2011 when it lost 68.1% of its value. Meanwhile, ether is down 69.3% in the second quarter and is on track for its worst quarter on record, dating back to its inception in 2015. The price crash has led to hedge fund Three Arrows Capital entering liquidation while other companies have paused withdrawals for users amid liquidity issues.
The crash in prices has also exposed issues with several cryptocurrency companies and projects, particularly those in the lending space and firms that are highly leveraged. Currently, the price of Bitcoin is trading below US$20k, but a mere 26,000 addresses contain BTC holdings. The dramatic decline in the price of the flagship cryptocurrency has largely impacted several Bitcoin whales, who are eventually leaving the market or dumping off their tokens. Bitcoin and the rest of the digital assets have been negatively impacted due to several reasons, including the Ukraine-Russia war, rising inflation, and predictions of an impending recession.
Most investors are anticipating whether or not, with BTC’s constantly declining values, the crypto efficiently and effectively survives the incoming recession. Even though the rising number of wholecoiners does little to support the price of the crypto, it surely does give hopes that the price will rise to regain its lost market value, or at least gain resistance before diving into the deep end. To make things worse, the increasing uncertainty around the stability of the global markets is also adversely hampering the dominance of digital assets in the economic and financial markets.
There are multiple reasons for Bitcoin to drive loss like this to crypto investors in 2022 such as the sudden announcement from Celsius Network about freezing withdrawals and transfers of cryptocurrency for an indefinite period, the pandemic, extreme market conditions, as well as an announcement from the US Federal Reserve. But Bitcoin is disappointing the global crypto market by dropping more and more instead of soaring high. Some crypto investors have started selling off their Bitcoin holdings to avoid any serious consequences in their crypto wallets.
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