Analysts revealed that, even though right now it seems to be on the right path, Bitcoin had its worst Q1 ever, recording a total loss of over $114 billion and going down with more than half of its value.
Not the best start for Bitcoin
The price of the cryptocurrency has fallen from $13,412.44, on January 1, to $6,744.19 at the time of the writing, marking an almost 50% decline, according to data from CoinDesk. In terms of market cap, in the first three months of the year, $114.9 billion of value has been wiped off.
Therefore, it can be said that this current price decline is the biggest in the coin’s history. The previous one was registered in the first quarter of 2014: 38 percent, according to the same CoinDesk, which tracks the price of Bitcoin back to the middle of 2010.
CNBC analyzed the digital asset’s price performance in the first quarter of each year, starting with 2018, finding out that Bitcoin recorded a decline in 5 of the 8 first tracked quarters, including 2018 Q1, which just ended. Also, the biggest price rise was in the first quarter of 2013, when the coin recorded a 599 percent surge.
Obviously, we all know that huge run up from the end of 2017, when the coin was very close to reaching #$20,000. However, the tough regulatory scrutiny from 2018, as well as news from other markets being under constant pressure had a big negative impact on the price.
Banks still have mixed feelings about cryptocurrencies
Earlier in March, at the G-20 summit, Argentina’s central bank governor talked about a summer deadline for each members, as they will be required to have “specific recommendations on what to do”, while task forces are currently working to submit proposals by July.
Italy’s central bank, on the other side, declared after the meeting in Buenos Aires, that cryptocurrencies indeed attract risks, but there’s no reason why they should be banned.
It will be more than interesting to keep an eye on how the market evolves, as many people now claim that Bitcoin, or ‘the bubble’ doesn’t have that much until it will finally burst.