Bitcoin sees its worst quarter since Q1 2018, with returns falling down by 45.91%.
As per the data released by Skew., the worst quarter in BTC history was Q1 2018, where the returns were almost -50%.
Q2 2021 sees a return percentage of -45.91, not too far off from what it was back then, and the quarter isn’t over yet.
Q2 2021 shows the worst quarterly returns since Q1 2018 | Source: Skew.
Can The Bitcoin Returns Get Any Worse?
Considering there are 8 days left in the quarter, it’s unlikely that the quarterly returns will get much more worse. Nontheless, it is still well within the realms of possibility.
It’s worth noting that while the quarterly returns are the worst since 2018, the Bitcoin year-to-date returns are still about +10%.
In contrast to this quarter, the Q1 2021 returns were about +102.93%. The reason for the collapse in Q2 2021 is complex, but one major factor was China‘s recent policy changes.
Bitcoin continues to fall as China keeps up with its mining crackdowns, and depending on what’s their next move, BTC might fall further still.
Related Reading | China’s Central Bank Orders Institutions To Block Crypto Transactions
If the trend keeps up, it’s possible the year-to-date returns will be entirely wiped out, and Q2 2021 will overtake Q1 2018, becoming the worst quarter in Bitcoin history.
Why The Poor ROI?
As mentioned earlier in the article, it’s hard to tell the exact cause as there are multiple factors affecting Bitcoin.
The biggest crash came in May, when China announced a reiteration of its cryptocurrency trading and mining ban.
Since then, China has continued its pursuit of prohibiting mining and the use of crypto in the country. During this period, BTC price has kept on falling further.
The most recent incident involved China shutting down mining farms in Ya’an, a city in Sichuan province. The hydro-powered mining hub was a host to a large demographic of miners.
Here is how the Bitcoin price chart looks like at the moment:
BTC keeps going down | Source: BTCUSD on TradingView
Right now, the coin values around $30k, down about 25% compared to a week ago.
As 2000X pointed out on Twitter, it’s looking like Bitcoin will correct itself to as much as $17k.
However, not all is gloom and doom as it’s possible the bull market will make a comeback after that dip, giving much better returns in the long-term.
Here is the chart showing how the change to a bullish market might happen:
Bitcoin might dip to 17k, but then trend towards a bullish market | Source: 2000X on Twitter
It’s possible Bitcoin will never be an always up market again. Or, it could indeed end up following the trend in the above chart. It will certainly be interesting to see where the market goes next.