Bitcoin is heading for the biggest quarterly drop in more than a decade

Bitcoin, the largest cryptocurrency, is on track for the worst quarter of the last decade, as central banks’ shift to more “hawkish” policies and a series of problematic developments around cryptocurrency-related platforms have shaken confidence.

The 58% drop in the largest cryptocurrency is the biggest since the third quarter of 2011, when Bitcoin was still in its infancy, according to data compiled by Bloomberg.

In the intervening decade, Bitcoin has seen explosive rises and corresponding declines, with the market value of cryptocurrencies soaring and peaking at 3 trillion. dollars, as they saw more investment and extremely low interest rates pushed risk-taking by many investors.

But the current bear market stands out due to the high leverage, as well as the increased feeling from central banks that cryptocurrencies are a threat to economic stability, while market arrangements are being prepared.

Bitcoin fell as much as 4.4% on Thursday morning to $ 19,302, the lowest level since June 19. The most volatile altcoins fell more, with Avalanche and Polygon falling about 8%.

Despite the negative climate, some analysts point out that there are signs that the descent may end soon. The unleashing that accelerated the slump in previous months may not last long, JPMorgan strategic analysts said in an update released Wednesday. They also noted that cryptocurrency venture capital funding “continued at a healthy pace in May and June.”

“Bitcoin has been trading at a low every 90 weeks for the last twelve years,” said Mark Newton of Fundstrat. “The lows should be just around the corner according to this cycle and one should be on the lookout in July, looking to buy the fall for a healthy recovery, as the feeling seems to be reaching a falling point.”