Bitcoin has shattered many bad records it ought not to following the end of the second business quarter of the year.
After three months of extreme volatility, the number one crypto closed its worst quarter since the bear market of 2018, and its third-worst quarter since 2014, in terms of USD performance.
Bitcoin has lost over 40% of its value within the quarter despite recording a new All-Time High of $65,000 in mid-April.
The second quarter of 2021, which opened at $58,789 (April 1, according to Bitstamp), ended at $35,037, decreasing approximately 40.5%.
High volatility also played out during the month with BTC hitting its record ATH at $64.89K, and the quarter low reached $28,600 days back.
What went wrong with Bitcoin in Q2?
Historically, Q2 is one of the best seasons for Bitcoin during the year. Q2 2021 seemed more bullish than envisaged early into the business quarter.
In the first weeks of April, Bitcoin continued a bullish trend which it began in Q1 and it peaked to new levels in the first weeks of the month.
Its fortune began to reverse not long after it retracted several thousands back to $60,000. Speculations had it that the reversal was spurred by a drop in institutional interest in BTC which was booming previously.
However, it got worse when billionaire, Elon Musk disabled Bitcoin payments for Tesla cars after it just invested and began accepting crypto as a means of payment. Over $365 billion immediately evaporated from the entire crypto market.
After the immediate price dump, China joined the pack and reiterated its old ban on BTC, and even went after miners. BTC could not take the hit as its price dipped further and the entire crypto market largely.
The FUD and overly-leveraged positions drove the primary cryptocurrency south hard, and Bitcoin plummeted to $30,000 days later. This meant a 54% decline in a month after the peak, which made May Bitcoin’s second-worst trading month.
Ever since the number one crypto has failed to overcome $40,000 on several occasions. Rather it dipped below $30,000 for the first time since January.
Although it’s currently trading at just shy of $34,000 – meaning a 25% increase since its June low – the asset is still far away from its Q2 2021 entry price.
Bitcoins 40% plunge this quarter from its record All-Time High makes it the third-worst quarter since 2014 and worst quarter since Q4, 2018.