The fall of Bitcoin by 56% was the largest since the third quarter of 2011
The worst quarter for the largest cryptocurrency by market value in more than a decade is expected.
Bitcoin has lost 56% of its value since the third quarter of 2011 when it was still a baby.
Deleveraging process may soon end
On Thursday morning trading in London, Bitcoin decreased by % to trade just under the $20,000 mark. The price of altcoins fell by 6%.
A well-known cryptocurrency hedge fund was recently placed into liquidation after it utilized irregular leverage to fuel its bets. Several cryptocurrency lenders have been compelled to stop withdrawing money, leaving depositors in the lurch.
Nevertheless, amid all the doom, some analysts point to indications that the bottom may be in sight. According to strategists at JPMorgan Chase & Co., “the deleveraging that has hastened the rout in recent months may not make much sense.”
“Over the past ten years, Bitcoin has made good development, experiencing cyclical lows every 90 weeks. This compound cycle suggests that lows should be imminent, and weak purchasing should be avoided for a strong rally in July, just as sentiment appears to be turning pessimistic, according to Mark Newman, a technical expert with Fundstrat.