The worst month and quarter since 2011 for Bitcoin came as Michael J. Burry warns U.S. stocks are just halfway done with their drops.
Bitcoin finished June 2022 just below $20,000 after a last-minute pump saw the bulls escape 40% monthly losses.
Bitcoin Could Remain ‘Boring’ For Months
Data acquired from TradingView showed BTC/USD spiking higher heading into the monthly close that came in at $19,924 on Bitstamp. With that last-minute movement, the crypto narrowly avoided its first-ever monthly close below a past halving cycle’s all-time high. In November 2017, Bitcoin reached around $19,770.
Right on time. #BTC pic.twitter.com/KxZiOF0kF8
— Material Indicators (@MI_Algos) June 30, 2022
The success was, at best, touch-and-go for a market that nevertheless sealed its worst monthly losses since September 2011, these coming in at about 37.3%. That was also short-lived, with Bitcoin dropping to $19,000 at the time of publication on July 1.
Indicator creator and analyst at trading suite DecenTrader, Philip Swift, summarized in part of Twitter comments after the monthly close:
“Steadily carving out a cycle bottom here.”
Bitcoin’s weakness came in as the US equities recorded some dismal results as well. Q2, 2022, commentators noted, was the worst since 1970 for the S&P 500, while the NASDAQ recorded its weakest H1 since 1998.
Big Short investor Michael J. Burry reacted:
“Adjusted for inflation, 2022 first-half S&P 500 down 25-26%, and Nasdaq down 34-35%, Bitcoin down 64-65%. That was multiple compression. Next up, is earnings compression. So, maybe halfway there.”
Burry had in the past projected that US monetary policy, now fixed on pushing up interest rates to combat inflation, would be compelled to change course before the end of the year.
Buy Bitcoin NowThe lead insights analyst at Blockware, William Clemente, told Twitter followers:
“Bottoming/accumulation signals everywhere, Major funds/lenders going bust, Worst quarter ever, Nocoiner haters dunking on us, Whole timeline saying this time is different. If we are finding an accumulation zone, will likely still see months of boring & capitulation through time?”
Coinbase Pro Buyers Step Up, Metric Indicates
Among the institutional investors, nonetheless, there was new evidence that Bitcoin was a ‘buy’ at $20,000.
As seen by the on-chain analytics platform CryptoQuant, the co-called “Coinbase Premium” returned to a positive region for the first time in two months on June 30.
The Premium is the difference between the price of BTC on major exchange Binance and US exchange Coinbase’s institutional arm, Coinbase Pro.
When it goes into the positive territory, it means that investors are paying more on Coinbase Pro, indicating increased demand. The Premium stood at 0.217 as of June 30.
CryptoQuant’s CEO, Ki-Young Ju, commented on the data:
“This uptick does not indicate a bull run but obviously, it tells us there are institutional buyers in this price range.”
