What happened to the Bitcoin price in the FY22 first quarter?

cryptocurrency gold bitcoin coin logo

Image source: Getty Images

The Bitcoin (CRYTPO: BTC) price, unlike ASX shares, doesn’t move on quarterly financial reports. But it sure does move.

But as we’ve been running our slide rules over the performance of ASX companies in the quarter just gone by (Q1 FY22), we thought we’d see how the world’s number one crypto by market cap stacks up.

How did the Bitcoin price perform in Q1 FY22?

The digital token commenced the last quarter trading for US$33,572 on 1 July, according to data from CoinMarketCap.

Three months later, on 30 September, that same virtual coin was worth US$43,790, a gain of 30%.

While that’s a handsome gain, investors weren’t spared the Bitcoin price volatility that’s part and parcel when investing in most cryptos.

Bitcoin hit a quarterly low of US$29,807 on 20 July and reached a quarterly high of US$52,633 on 6 September. That’s a price range of more than 76%.

What moved investor sentiment during the quarter?

The Bitcoin price was pushed and pulled on various fronts over the quarter.

Increasing inflation concerns was one of the factors helping drive prices higher. According to a recent survey by global crypto platform Gemini, “59% of respondents believe cryptocurrencies will offer better long-term growth potential than the Aussie dollar”.

Then there was China.

The Chinese government’s move to stamp out crypto mining and discourage trading certainly put a short-term damper on the Bitcoin price.

As did global investor jitters about the potential financial ripple effects of China’s debt laden property giant China Evergrande Group (HKG: 3333). Jitters which brought 98 of the top 100 cryptos into the red on 21 September.

But it doesn’t take the world’s most populous nation and number 2 economy to move the Bitcoin price.

Bitcoin initially climbed on news that central America’s El Salvador was adopting it as legal tender. That measure was pushed through by the government, which enabled citizens to buy and sell items using the government’s cryptocurrency wallet, Chivo.

However, on 7 September, the day of the rollout, glitches in Chivo were partly responsible for seeing Bitcoin tank by 11% in 24 hours. Those glitches were fixed later that day.

In the wild world of cryptos, these were just some of the forces impacting on the Bitcoin price over the quarter just past.

Source link