Bitcoin shows the worst 2nd Quarter performance since 2018.
Bitcoin’s 2nd Quarter performance this year is the worst it has seen in years.
Bitcoin price started Q2 at $58,000, then it fell to its current price of $33,200. Bitcoin’s return for Q2 2021 sits at -40%, dropping from 102% for the previous quarter.
For the past two years, the Q2 returns were 42% for 2020 and 157% in 2019.
Since 2014 it has never registered a Q2 return that is lower than -6%. Truthfully, the 2nd Quarter has always been a positive quarter for Bitcoin, with the cryptocurrency registering a positive return on six occasions since 2014.
2nd Quarter Struggles of Bitcoin
There are many reasons why Bitcoin’s record dropping in the past three months.
The cryptocurrency’s on going issues with the environment came into focus when Elon Musk, Tesla’s CEO and former advocate for Bitcoin, announced that the electronic vehicle manufacturer will stop taking Bitcoin payments because of its environmental impact.
“We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel,”
the Tesla CEO tweeted last May 12
“Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at great cost to the environment,” he continued.
During the aftermath of that tweet, Bitcoin dropped from $56,000 to $43,000 in one week. It is a percentage decline of 23%.
Ever since his tweet, Bitcoin suffered to regain momentum in the face of its negative impact on the environment.
The situation has grown worse for the flagship cryptocurrency. China has cracked down on Bitcoin mining across the provinces Sichuan and Yunnan.
The Chinese government’s position on Bitcoin mining isn’t surprising. With the country’s commitment to carbon neutrality in the next few years.
But China’s most prominent payment institutions have dealt an additional impact to the cryptocurrency when they backed the government’s ban on crypto transactions.
Unimpressive milestones
It isn’t all bad news for Bitcoin in the 2nd Quarter. However, the cryptocurrency’s high points in the past few months have not moved the needle on its price by much.
Coinbase went public on the Nasdaq early in the 2nd Quarter. Despite a lot of crypto onlookers describing it as a “watershed” moment for the industry. Then Bitcoin’s price went in the wrong direction again.
Coinbase went public last April 14. Bitcoin was priced at $63,000 that time. By the end of the month, it dropped to $53,000.
Even after Bitcoin’s Miami conference, when El Salvador announced it would adopt the cryptocurrency as legal tender, Bitcoin still didn’t see a positive bump in price. On June 5, the day of President Bukele’s announcement, Bitcoin was valued at $36,000.
After Bitcoin’s Miami conference, El Salvador announced that it will adopt the cryptocurrency as a legal tender. Bitcoin didn’t see a positive bump in the price. Last June 5, at the day of President Bukele’s announcement, Bitcoin’s price was at $36,000.
A month later, Bitcoin fell by $3,000.
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