The crypto market turned disappointing on Thursday for investors and crypto-lovers when its flagship asset, the Bitcoin (BTC) saw historic loss. The crypto currency closed with monthly losses amounting to over 40%. This low is a first for the crypto-asset in 11 years.
Wall Street witnessed a further plunge in Bitcoin (BTC) on June 30 as US equities opened weak.
The Dollar Reaches its First High in Decades
While the Bitcoin was seen at its lowest, it was also the time of the U.S. dollar, which seems to have made a thundering comeback. This quarter has seen the Dollar exhibit a high, which is the first time in 20 years. The DXY or the U.S. Dollar Index went above 105.1, short just of 0.2 points since its high in 2002.
The Bitcoin, in parallel, suffered, as the crypto-currency failed speculators by being unable to preserve its $20, 000 or $19, 000 value. Seen limping at the U.S. stock market, the Bitcoin recorded a value down 2.6% and 1.8% on Nasdaq Composite Index and S&P 500 respectively.
BTC and dollar data were obtained after TradingView and Cointelegraph Markets Pro data followed
BTC/USD. The pairing was followed even as the cryptocurrency lost $19, 000 to close at the lowest value in over 10 days.
Meanwhile, inflation data put forth the good news that the worst of the market condition could be past us.
According to news reports by Cointelegraph, central banks opined that the low rates that were witnessed prior to COVID-19 may not be seen any time in the future.
Most of on-chain metrics show a loss that is historic. Price data give a picture of the extent that BTC could shrink in a bear market compared to the rest. BTC/ USD would lead to over 40% in monthly
losses for June 2022 if the cryptocurrency closes at the current $19, 000.
This loss would amount to the most significant loss in monthly statistics since 2011, Coinglass and
TradingView data suggest. This loss is significant given that bear markets in 2014, 2018 and 2020 saw far lesser monthly losses. The last such severe loss of 40% experienced by the Bitcoin was when BTC/ USD closed at $8.