Crypto Market July 1st: Bitcoin Ends June With Record Loss

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2022-07-02 11:57:39

On the afternoon of the last day of June 2022, Bitcoin (BTC) lost the $20,000 guaranteed mark. However, the momentum has returned and brought BTC back to the previous price level. Summing up the entire month of June, the largest cryptocurrency in the market marked its biggest monthly decline since 2011. Meanwhile, US stocks also ended their worst first half in more than 50 years. .

Cryptocurrency Market

Top 10 cryptocurrencies on the cryptocurrency market as of July 1, 2022
(Data from Coinmarketcap)

Data from TradingView shows BTC has dipped below $19,000 to establish its lowest level in more than ten days. The bulls failed to defend the $20,000 or $19,000 zone due to the unpredictable moves of the US stock market yesterday.

However, the cryptocurrency bounced back after hitting an intraday bottom at $18,626. Attempts to close June at $19,942 helped improve the recorded monthly loss of almost 40%. The bulls’ attempts to regain the $21,000 mark to start July have completely failed.

Data from on-chain monitoring platform Coinglass shows that this was the worst June ever and the heaviest monthly loss since September 2011.

Not even March 2020 and the bear market of 2018 or 2014 have seen such steep declines in the monthly timeframe. The 40% monthly drop was last seen as BTC/USD traded around the $8 threshold.

Bitcoin Monthly Price Chart on TradingView

With Bitcoin’s unexpected rally in the last minutes of June, altcoins also had a better recovery momentum, but most still recorded declines. In addition, there were a few projects that went against the general trend of the market and recorded a double-digit increase. Leading the recovery in the top 100 are Amp (AMP) and Convex Finance (CVX) with a growth of 27.2% and 24.8% respectively in the past 24 hours.

The Ethereum (ETH) platform token is currently trading just below the $1,100 threshold and has recorded a 3.4% drop from yesterday. The tokens that fell in the top 10 like XRP, ADA, DOGE or DOT had a drop of 1-2%.
In addition, tokens like BNB, SOL or TRX have a slight growth that is not too significant, also from 2-3%.

Macro factors

US stocks fell on Thursday, as the S&P 500 closed its worst first half in more than 50 years.

Closing the session on Thursday, the Dow Jones Industrial Average lost 253 points (about 0.8%) to 30,775 points. The S&P 500 lost nearly 0.9% to 3,785 points, and the Nasdaq Composite dropped 1.3% to 11,028 points.

Dow Jones and S&P recorded their biggest quarterly declines since the first quarter of 2020, when Covid-19 lockdown measures sent stocks plunging. The Nasdaq Composite dropped 22.4 percent in the second quarter of 2022, its worst quarter since 2008.

The S&P 500 ended the first half of the year in what was seen as its biggest disappointment since 1970, amid concerns about rising inflation and the Federal Reserve’s (Fed) interest rate hikes, as well as the conflict. Protracted Russia-Ukraine conflict and measures to block Covid-19 in China.
The Nasdaq Composite has been particularly hard hit this year. This index is currently 13% lower than the ATH recorded on 11/22/2021. Some of the biggest tech companies have posted sharp declines this year, with Netflix shares evaporating 71%. Shares of Apple and Alphabet fell 23% and 24.8%, respectively, while Meta plunged 52%.

The US Department of Commerce reported on Thursday that the consumer price index, the Federal Reserve’s (Fed) inflation gauge, rose 4.7% in May 2022. This is 0.2 percent lower than the previous month, but still an unusually high level since the 1980s.

The Chicago PMI, which tracks business activity in the region, came in at 56 in June, below estimates of 58.3.

The Fed is still taking drastic action to try to reduce soaring inflation, which has soared to a 40-year high. Cleveland Regional Fed President Loretta Mester said that she favors raising rates by 75 basis points at the central bank’s upcoming July meeting, if current economic conditions have not improved. . In early June, the Fed raised interest rates by 0.75 percentage points, the biggest increase since 1994.

Some Wall Street watchers fear the Fed’s aggressive action will tip the economy into recession. Central banks are also starting to acknowledge that the market will never return to the low interest rates seen before the COVID-19 outbreak.

The value of the US dollar is increasing

Meanwhile, the USD Index has rebounded, towards a 20-year high this quarter, having peaked at 105.1, just 0.2 points off its highest since 2002.
Researcher and trader, Faisal Khan, says the US Dollar (DXY) looks set to test the highs last seen in December 2002, when the short-term downtrend was broken amid the backdrop The risk market continues to crash.

With the dollar getting stronger and the “hawkish” view from central banks, gold prices fell on Thursday (June 30) and recorded the biggest quarterly decline in the past five quarters. Closing Thursday’s session, the spot gold contract fell 0.6 percent to $1,807 an ounce, down more than 6% in the quarter and the third consecutive month of decline. Gold futures lost 0.5% to $1,807 an ounce.

Meanwhile, due to recession fears and uncertainty about OPEC+ output, oil prices fell about 3% on Thursday (June 30). Ending Thursday’s session, the Brent oil contract fell $3.42 (about 3%) to $109 a barrel. WTI oil contract lost 4.02 USD (equivalent to 3.7%) to 105 USD/barrel.

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