Bitcoin, the world’s leading cryptocurrency, is on track to record eight consecutive weeks of losses for the first time in its history.
Earlier today, the largest cryptocurrency reached an intraday high of $30,275 on the Bitstamp exchange.
However, the top cryptocurrency would still have to gain 4% in order to put an end to the record-breaking bearish streak.
Over the past few weeks, Bitcoin has lost nearly 36% of its value, currently trading just below the $30,000 level.
Bitcoin suffered from a double whammy of unfavorable macro conditions and the implosion of the Terra ecosystem. Last week, the world’s largest cryptocurrency dropped to $25,401, the lowest level since December 2020.
Despite being billed as a hedge against inflation, Bitcoin has plunged 36.58% since the start of the year. It underperformed in line with other risky assets such as tech stocks. In fact, Bitcoin’s correlation with the Nasdaq 100 index reached a new all-time high earlier this year.
Galaxy Digital CEO Mike Novogratz recently warned market participants against anticipating a sharp turnaround in market sentiment, claiming that it would take more time for stocks and crypto to bottom out. In fact, Novogratz predicted that prominent altcoins could decline another 70% from their respective price peaks.
On May 17, the crypto “Fear and Greed Index” hit the lowest level since May 17 hit 8/100, the lowest level since the pandemic-induced crash that took place in March 2020. It remains in “extreme fear” territory, with Bitcoin struggling to stage even a short-lived relief rally.