Bitcoin is on track for its worst quarterly loss in more than a decade.
The world’s largest cryptocurrency lost about 58% of its value in the second quarter of 2022, according to CryptoCompare. Bitcoin has fallen from $45,524 at the start of the quarter to around $18,000 on Thursday, the last day of three months, according to CoinDesk.
It was Bitcoin’s worst quarterly performance since its 68.1% drop in the third quarter of 2011.
Bitcoin fell 39.8% in June and had its worst month since listing on exchanges in 2010, according to Coin Metrics.
Meanwhile, ether fell 69.3% in the second quarter, on track for its worst quarter in history, dating back to its inception in 2015, according to Coin Metrics.
Coin collapse, 3AC liquidation
Cryptocurrency prices have come under intense pressure this quarter as rampant inflation has led to central banks around the world raising interest rates and causing a sell-off in risky assets such as stocks and digital coins.
The price slump has also exposed problems for some cryptocurrency companies and projects, especially those in the lending space and highly leveraged companies.
There were some high-profile issues this quarter.
The recent downturn, described as a new “crypto winter,” has also impacted company growth and hiring. Coinbase and BlockFi announce layoffs.
How does this cycle compare to the past?
CryptoCompare research analyst Jacob Joseph noted that during previous boom-and-bust cycles, Bitcoin fell 8 percent from a peak of $19,871 in the fourth quarter of 2017 to a low of $3,170 in the fourth quarter of 2018.
Bitcoin fell from a high of $1,239 in the fourth quarter of 2013 to a low of $221 in the second quarter of 2015 in 2014, and 2014 saw a similar drop of 82.2 percent, Joseph said.
“This suggests that if the current poor macroeconomic conditions continue, we may be entering a further drawdown period,” Joseph told CNBC.
Other investors also expressed pessimism. In May, Guggenheim chief investment officer Scott Minerd said bitcoin could fall to $8,000. At the time, the cryptocurrency was trading around $30,000, down 70 percent.
— Gina Francolla of CNBC contributed to this article.