Bitcoin Drops by 14% in the 2nd Quarter!

Bitcoin has just gone through a historically difficult quarter. For the first time since the third quarter of 2023, Bitcoin recorded a significant decline of 14% in the second quarter of 2024. This drop marks a turning point for the digital currency, which had reached unprecedented heights in March.

Bitcoin: a quarter marked by volatility!

The last trading day of the quarter, June 28, confirmed the bearish trend with a drop of about 9% for June. This period was marked by the expiration of $6.6 billion in Bitcoin options! Adding additional pressure to the market. Despite these challenges, Bitcoin has shown some resilience. It is consolidating above the $60,000 mark, dropping below it only briefly and twice.

The recent drop in Bitcoin can be attributed to several interrelated factors. First, the Bitcoin network was saturated, struggling with a backlog of over 200,000 transactions. Then, a dramatic drop in the price of Bitcoin to $62,500 prompted the liquidation of 60,000 traders, exacerbating market volatility and undermining investor confidence. Finally, despite what seems like good news, BTC’s price wavered due to the announcement of possible regulation. This may have raised concerns about the future of crypto. These events created a climate of uncertainty, resulting in a chain reaction of sales and downward pressure on the price of Bitcoin.

However, it’s important to note, as highlighted by Nickolas Hoog, VP Marketing at BitMart:

Bitcoin’s price volatility reflects its growing pains as an emerging asset class. As the market matures, we expect these fluctuations to become less extreme.

Nickolas Hoog, VP Marketing at BitMart

Uncertainty looms over Q3 2024

Historical data suggests a generally strong July for Bitcoin, with a slightly positive third quarter expected. However, September is traditionally bearish, which could influence the overall performance of the next quarter.

This quarterly Bitcoin decline raises questions about the long-term stability of crypto and investor confidence. As the market continues to mature, investors must remain cautious and informed. Because, historical trends do not guarantee future performance. The future of BTC, while promising, remains uncertain, and this past quarter serves as a cautious reminder.