Bitcoin, the world’s leading cryptocurrency, is on track to record eight consecutive weeks of losses for the first time in its history.
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.
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.
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.