Bitcoin (BTC) is on track for its worst month and week since 2022, falling 22% and 18% respectively. Investors are facing unrealized losses, with the average purchase price around $97,880. The cryptocurrency market cap has significantly decreased by $1.1 trillion, indicating considerable volatility influenced by external economic conditions.

Bitcoin (BTC) is poised to experience its worst month since June 2022, having fallen 22% in February, with an 18% decline this week alone. These significant drops mark the largest downturns since 2022, raising concerns among investors regarding a volatile market influenced by economic factors, including President Donald Trump’s tariffs, which may exacerbate inflation and reduce the likelihood of interest-rate cuts.

Currently, the average purchase price of Bitcoin stands at approximately $97,880. Unfortunately, this places investors in a precarious position, facing unrealized losses of more than 18%, as BTC dipped below $80,000 this past Friday. Such losses are not unprecedented; it is common for investors to endure unrealized losses early in the year, as prices can rebound later.

On-chain analytics reveal a concerning trend, with approximately $1 billion in realized losses reported daily over the past three days—the highest since Bitcoin’s substantial decline last August when it fell to $49,000. Additionally, the total cryptocurrency market capitalization has plummeted by $1.1 trillion, resulting in a current valuation of $2.59 trillion as per TradingView metrics.

James Van Straten, a Senior Analyst at CoinDesk who specializes in Bitcoin’s relationship with macroeconomic variables, notes the unfolding situation. His expertise is grounded in extensive experience with on-chain analytics and monitoring Bitcoin’s impacts on the broader financial system.

In summary, Bitcoin is currently facing significant challenges, experiencing its worst month and week since mid-2022. Investors are acutely aware of their unrealized losses as price fluctuations continue to affect the cryptocurrency market, with substantial capital lost overall. With external economic factors at play, stakeholders must remain vigilant as the situation develops.

Original Source: www.coindesk.com

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