Bitcoin’s 37% fall in the past 30 days has become the worst monthly performance in BTC history. The king of digital currencies has fallen by 37% in the last month.
June was a very difficult month for the cryptocurrency market. This month, Bitcoin saw its biggest monthly drop in history. In June 2022, the price of BTC fell by about 37% and the price of ETH fell by 45%.
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Bitcoin down 37%
The recent collapse of the cryptocurrency market has largely been the result of macroeconomic problems and developments. The events of the last month in the cryptocurrency market have made most investors more risk-averse than before. Jeff Dorman, chief investment officer of Arca Funds, said:
Last season was one of the worst on record in the history of the stock market, bonds and other sectors.
US inflation is currently at its highest level in 40 years. The conflict between Russia and Ukraine continues and the supply chain and global trade are also in an uncertain situation. Most of the financial market investors have experienced severe fear and panic. The fear of these people is completely reasonable.
“GDPNow” index is one of the tools of the Federal Reserve Bank of America. This index is used to measure the state of US gross domestic product. In the second quarter of 2022, the GDPNow index fell by one percent. The economic recession in the United States has most likely begun, because for the second consecutive month we see the negative growth of the American economy.
Macroeconomics isn’t the only reason for Bitcoin’s 37% fall. Two weeks ago, Celsius suspended its user withdrawals. After this incident, the price of native CEL token fell by 50%. This cryptocurrency continued to recover 26% of its 50% loss with an upward movement.
Among the other reasons for the 37% fall of Bitcoin, we can mention the stop of withdrawal of users’ funds by CoinFLEX exchange. The native token of this exchange has also lost more than 65% of its value in the last 24 hours. Dorman said about this:
The collapse of financial markets has two different parts. On the one hand, the problem-free operation and emergence of active platforms in the field of decentralized finance (DeFi) and on the other hand, the destruction of centralized platforms such as Celsius can be an example.
Bitcoin may continue to fall
Many analysts believe that Bitcoin will lose the limited support of $18,000 to $20,000 starting in June. Joe DiPasquale, CEO of BitBull Investment Institute, said in this regard:
The return of Bitcoin price from the current support area will lead to a gradual recovery over the next few months. If the support of the $18,000 area of Bitcoin is broken, the price of the largest cryptocurrency in the market will fall to the support of $13,000-15,000. In this case, prices will take much longer to recover.
The Grayscale Discount index is the result of the difference in the price of each share of the Grayscale investment fund compared to Bitcoin. After the rejection of the request to launch a Bitcoin exchange-traded fund (ETF) in the United States Exchange Commission, this index underwent important changes.
Each share of Grayscale Bitcoin Investment Fund (GBTC) is currently 31% below the current price of Bitcoin. Before the rejection of the decision to launch the ETF, this gap was 28.4%. Pablo Jodar, one of the senior managers of Storm Partners, believes that this gap is a sign of decreasing optimism of investors regarding the change of decision of the Exchange Commission regarding cash ETFs in the short term. Pablo Jodar said in this context:
Currently, the publication of the news of the United States Exchange Commission’s opposition to the offering of Bitcoin cash ETFs has had an adverse effect on the stock status of the Grayscale fund.
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Source: coindesk