BTC Recorded the Worst Monthly Performance in History in June 2022

BTC Recorded the Worst Monthly Performance in History in June 2022

In terms of Bitcoin and larger market correction, June 2022 was a terrible month. The largest cryptocurrency in the world, Bitcoin (BTC), saw its worst monthly performance since 2011 as it fell by more than 37%.

Since then, Bitcoin has been holding steady at about $20,000 levels. Additionally, Bitcoin had one of its worst quarters, shedding more than 60% of its value in Q2 2022.

According to sources, the market is still quite risk-off as long as U.S. inflation predictions are expected to be high and there is a chance of a potential recession. It has also been seen in the on-chain functionality and network activity of Bitcoin. As CoinGabbar earlier revealed, institutional traders have also been massively shorting Bitcoin.

The recent decline in the price of bitcoin has been eerily resembling the previous bear market bottoms in 2018 and 2020. However, there isn't yet enough of a trigger for the price of bitcoin to reverse.

On-chain Data Shows High Conviction Accumulation

Despite the price adjustment, sources state in their report, there is still a strong commitment for accumulation and self-custody. Exchange balances have been losing money at previously unheard-of rates. On the other side, "shrimp and whale balances" in Bitcoin are dramatically rising.

However, the on-chain activity indicates that the network activity and user count are on the verge of entering the most severe bear market region. According to sources, address activity has decreased by 13% from over 1M/day in November to just 870k/day right now. This indicates a lack of user growth and perhaps difficulty retaining current users.

At this point, it would be challenging to predict the BTC bottom. According to some market observers, the price of bitcoin might drop as low as $15,000 if the macroeconomic situation across the world gets worse.