Bitcoin fell 56% this quarter, its biggest drop since the third quarter of 2011, when it was still in its infancy. The cryptocurrency market has seen several bull and bear markets over the decade, ballooning in value as they gain wider adoption and as ultra-low interest rates spur speculation.
But what is striking about the current bear market is the deleveraging of cryptocurrencies and the regulatory scrutiny of an asset class that many central banks now see as a threat to financial stability. Despite the bleak outlook, some analysts pointed to signs that the market may be nearing a bottom.
Fundstrat technical strategist Mark Newton said: “Bitcoin has done well over the past 12 years, hitting cyclical lows every 90 weeks. Based on this cycle of composite data, the lows should be coming soon, and people One should be vigilant in July, looking for buying opportunities to await a healthy rebound as sentiment appears to be approaching a bearish tipping point.”