MarketsThe crypto crash continues BTC sees its biggest quarterly drop in over...

The crypto crash continues BTC sees its biggest quarterly drop in over a decade

The crypto crash continues BTC sees its biggest quarterly drop in over a decade while tech stocks take a dive when will we finally see a recovery rally. 

Last week the crypto Market resumed its downward Trend towards multi-year lows for most coins and tokens. This resulted in the second-worst quarter for cryptocurrency since 2011 with BTC having lost 56% over the last three months. For context, the worst quarter for cryptocurrency took place in Q3 of 2011 when BTC fell by 66 percent.

Most altcoins follow BTC with much more volatility. It should be no surprise that most altcoins fell by 80% or more during the same period. 

BTC tends to follow tech stocks. As it so happens tech stocks closed the worst quarter in years too with the NASDAQ index dropping by 22%. This is all because of another macro Factor that’s slowly taking center stage in the eyes of investors. That’s the possibility of a recession for reference to the official

For reference, the definition of a recession is a period of economic decline in which trade and industrial activity are reduced and is identified by a fall in GDP. It’s Something that is now being forecasted by the Federal Reserve Bank of Atlanta’s GDP now mode. It will be confirmed when these GDP figures come out at the end of July.

The reason why the markets are reacting already is that they can see the writing on the walls. Specifically, the collapse in commodity prices that we saw last week. Oil, Copper, Wheat, and even Natural Gas saw double-digit declines in price or similar indicators such as deliveries and orders.

A sharp contraction in Commodities is considered to be concrete evidence that the global economy is starting to slow down. The worst part is that these double-digit declines aren’t likely to put a dent in consumer prices anytime soon.

Related: 80,000 Bitcoin millionaires were eliminated in the crypto crash of 2022.

As Commodities related to energy remain at or above record highs. Still, many investors are wondering when stocks and crypto will finally see a convincing recovery rally also referred to as a dead cap bounce. This is because it’s rare for stocks and even cryptocurrencies to see so many consecutive weeks of losses without some sort of short-term reversal. 

Some are saying the Catalyst required for a short-term reversal in the crypto market is for the current crypto contagion caused by Terror and three arrows Capital to finally finish but unfortunately the crypto plague continues to claim new victims.

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