Bitcoin (BTC) is on track for the worst month of three years, falling 22% as President Donald Trump’s tariffs on major US trading partners raise fast inflation concerns, reducing the likelihood of interest reductions and reducing the desire for risky investments.
Finally, the largest cryptocurrency fell when it fell by more than a third in June 2022. This week alone, BTC has dropped by almost 18%. This is the steepest slide since the week that ended on November 13th of the same year.
The slides will leave investors who purchased Bitcoin this year in a tough water under the water. The average purchase price was the first since its start at $97,880 in January, with BTC falling below $80,000 early on Friday, with an average buyer worsening by 18%.
Historically, this is not entirely uncommon. Investors often face some unrealized losses at the beginning of the year. This happens when Bitcoin prices fall below the recipient’s cost base before recovering later this year.
On-chain data shows that losses realized escalated as prices fell. Over the past three days, realised losses of approximately $1 billion have been recorded daily. This was the most since the yen trade rewind in August when Bitcoin fell to $49,000.
Furthermore, according to TradingView Metric, a whopping $1.1 trillion has been wiped out of crypto market capitalization, bringing the total to $2.59 trillion.