The summer of 2022 has been terrible for the cryptocurrency market. In August, Bitcoin became the worst-performing asset, despite several speculations and hopes for the asset to recover soon enough.
During CNBC’s Fast Money episode, Dan Nathan, principal of RiskReversal Advisors, said that it is going to take a pivot by the U.S. Federal Reserve for Bitcoin to start another rally- something that isn’t likely to happen this year.
Earlier this week, the Wall Street Journal reported that the Fed was on track to offer another 75-basis point interest rate hike. In his hawkish Jackson Hole speech delivered in late August, Fed Chair Jerome Powell clarified that the central bank would not pivot away from an intense tightening.
The Fed has been escalating interest rates at the fastest pace since the 1980s in order to deal with the high inflation.
Nathan also noted that the Bitcoin dominance level is at its lowest level, which isn’t making the situation any better.
He also says that Bitcoin has been trading like an ordinary stock, so bulls will have a hard time crafting a new narrative around it.
A Brutal Summer
Bitcoin’s performance has been disastrous of late. In June, the cryptocurrency plunged by more than 37.3%, scoring its worst month in more than a decade.
The coin managed to get back in July and displayed a mild recovery by adding 17.9%. However, it then lost all these gains.
The world’s leading cryptocurrency – Bitcoin- had a highly underwhelming month, plunging by almost 15% in August. As per the data provided by U.K.-based Acorn Macro Consulting, it was the worst-performing global asset for the month of August, sitting at the very bottom of the chart.
Following the gain of 17% in July, Bitcoin surged as high as $25,121 in August, but it was then followed by a sharp decline.
A historically bearish month – September, is off to an underwhelming start, as expected. On Wednesday, the Bitcoin price dipped to $18,540, coming awfully close to the 2022 low.
Currently, Bitcoin is trading at $19,214.55, a gain of 2.25%.