In the first quarterly report of 2018, Bitcoin (BTC) dropped by 50 percent to mark its worst Q1 performance ever recorded.
Looking at the performance of Bitcoin stretching back to 2013, it is interesting to note that the cryptocurrency has seldom experienced any gains during the subsequent yearly first quarters.
This year’s decline ought not to be surprising especially considering that Bitcoin did experience an unexpected surge to an all-time high in its value just last year, with its value shooting to about $20,000.
Instability Kicks Off 2018
At the beginning of this year, Bitcoin had witnessed a drop of approximately 44 percent from its unprecedented highs that had rocked the headlines just some weeks before in December 2017.
Despite this, as the second week came by, Bitcoin had already scaled to $17,000, subsequently re-inspiring new hopes of another unprecedented surge in highs.
However, due to fears of more stringent regulations both in China and South Korea, the prices gradually dropped below $10,000 as was witnessed in mid-January.
Moreover, the decline was further fueled on January 30, particularly after the announcement by Facebook to ban all crypto ads.
Prices Begin Rising Again
This sell-off pushed through in the weeks that followed and by February 5, BTC prices had already fallen to a low of $6,000.
Surprisingly, despite the steady decline in value over the weeks, the consistent lows had already been overturned around mid-February, with the most significant result coming on February 20 when the cryptocurrency posted a resurgent surge to $11,700.
Once more, the surge in prices sparked some life into the otherwise extinguishing hopes for a repeat price resurgent as had been witnessed in December 2017.
But the move quickly died down around the primary sinking trend line, establishing $11,700 on the official charts.
Bitcoin Comes Crumbling Down
The decline in BTC prices continued (even reaching to over 30 percent) after the decrees were unable to overcome the trend line resistance early in March.
What followed was a series of negative news for digital currencies, with Twitter and Google also joining the bandwagon to ban all crypto ads.
Afterward, the decline was inevitable with the prices falling to just under $7,000 right at the end of the month.
Implications for Q1 Records
Although the 2018 Q1 price dip may come off as a surprise, a peek back into the historical price index information of Bitcoin indicates that this result is actually the second-worst quarterly performance on record.
Back in 2011, Bitcoin witnessed a similar occurrence, suffering its greatest decline in quarterly value when BTC went down from $16 to $5.This occurred in the 3rd quarter of the year 2011 and represented a massive drop of 68 percent.
Still, the sharp decline for Bitcoin in 2018’s first quarter suggests a normalcy in the markets after the regulatory changes put forth by the South Korean government and other nations.