Bitcoin (BTC) fell 45% in June, marking its worst month ever

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At the end of last week, several media outlets reported this Bitcoin (BTC) had its worst monthly close ever, posting a 38% loss, but it appears to be worse than that for the flagship cryptocurrency. According to data from CoinMarketCap, Bitcoin hit a high of $ 31,693 in June and dropped to a low of $ 17,708 per coin, which represents a 45% drop for the digital currency from Campania.

Macroeconomic factors are weighing down cryptocurrencies

There are a variety of major economic contributors who are reducing Bitcoin’s value. For example, we have seen more than 12 months in a row inflation above 5% compared to the comparable months of the previous year and a record of 8.6% in June 2022, which is hitting consumers hard.

To try to slow that inflation down, the Fed followed its aggressive plan to raise short-term interest rates by 0.75% last month and could raise rates by the same amount this month as well. Not to mention the tensions in Eastern Europe between Russia and Ukraine, which continue to cause supply chain problems and limits on the availability of crude oil, driving up energy and gasoline prices.

Additionally, the Atlanta Fed tweeted last Thursday that a key indicator used to monitor general economic trends shows that real gross domestic product fell by 1% for the second consecutive month. This could be an early sign that production has fallen for the entire second quarter. If so, it would mark two consecutive quarters of negative growth, which is the textbook definition of a recession.

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All of these factors and uncertainty are combining to move funds away from speculative investments like cryptocurrencies and towards safer investments like bonds and annuities.

Is Bitcoin a Purchase?

As of press time, BTC is trading lower by 2.5% on the day and 6.3% for the whole week cryptocurrency exchanges, with a price tag of less than $ 19,500 per coin. Bitcoin has not been in this trading range since December 2020 and is currently down 71% from its all-time high of $ 68,789 price per coin set on November 10, 2021.

This is not financial advice and investors should always go it alone Research and be aware of how much they can afford to risk, but averaging the dollar cost now in a proven crypto asset like Bitcoin might be a wise move for some investors. While Bitcoin may still drop further, it is currently well within the accumulation range for anyone looking to acquire a top-tier cryptocurrency.

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