2022 is one of the worst quarters for Bitcoin since 2011. Bitcoin is continuously losing its value, and it's the worst month on record.
Bitcoin is a most famous cryptocurrency in the world and has lost its 58% value in the 2nd part of 2022. Approximately $1.2 trillion money has been destroyed of the whole crypto marketplace.
Cause of Low Bitcoin Value
Multiple factors affect the Bitcoin market. However, the following are the five main factors of low bitcoin value.
This quarter, the U.S. Federal Reserve made two aggressive rate hikes to combat the high rise. It caused fears of a recession in the United States and elsewhere.
1) Macroeconomic Pressure
This also hit stocks, particularly high-growth technology stocks. The tech-heavy Nasdaq Composite fell 22.4 percent in the 2nd quarter. This is the nastiest quarterly performance since 2008.
The 1st key event of the last quarter was the collapse of the TerraUSD stablecoin algorithm and sister token Luna, which shocked the entire industry.
2) TerraUSD Collapse
is a cryptocurrency that is generally tied to real-world assets. UST or
was considered to be set individually in USD.
The second main reason to reduce the bitcoin value is the lender Celsius. In June 2022, cryptocurrency
suspended customer withdrawals.
3) Lender Celsius pauses withdrawal
4) Three Arrows Capital (3AC) liquidation
Three Arrows Capital
expressed to the distorted algorithmic sister token luna and stablecoin terraUSD.
In the last month, crypto exchange CoinFlex stopped withdrawing customers due to "extreme market conditions" and customer accounts falling into adverse equity.
5) CoinFlex-'Bitcoin Jesus' spat