Bitcoin, the world's largest cryptocurrency, recently experienced its worst quarter since 2011.

In the second quarter, more than half of the market value was removed, reaching about 58%, and the entire cryptocurrency market lost approximately $1.2 trillion.

Here are five reasons why Bitcoin is in this miserable situation.

First, macroeconomic pressure.

The Federal Reserve has raised interest rates twice this quarter to combat inflation, which has not only stoked fears of a recession but also affected the stock market, especially high-growth large-cap technology stocks.

Since Bitcoin is closely correlated with U.S. stock index movements, the stock sell-off will weigh on Bitcoin and crypto markets as investors dump risky assets.

Second, Luna breaks down.

Among the big events of the past quarter was the collapse of algorithmic stablecoin TerraUSD (UST) and sister currency Luna.

The stable currency algorithm is to control the circulation of stable currency through algorithms and maintain the value of stable currency.

However, after UST's massive redemptions and decoupling from the US dollar, Luna fell into a death spiral, with investors panic selling, causing the system to be unable to keep up with the selling pressure, making both coins worthless.

This last incident had a chain reaction that affected the well-known cryptocurrency hedge fund 3J Capital.

At point 3, Three Arrows Capital (3AC) was liquidated.

Sanjian Capital, which has a history of 10 years, is known for hedging cryptocurrencies with high leverage.

As mentioned earlier, the company was hit by UST and Luna, which caused crypto lenders to liquidate their positions, but it was unable to borrow money due to an inability to meet margin requirements.

Finally, the company has poor liquidity and has recently sought bankruptcy protection.

Fourth, Celsius does not allow customers to withdraw cash.

US cryptocurrency lending platform Celsius suspended customer withdrawals in June.

Celsius will lend the money deposited by customers to cryptocurrency players willing to pay high interest rates and provide customers with a high interest rate of 18%.

However, after the cryptocurrency market plummeted, the company refused to let customers withdraw money, citing "extreme market conditions", which also showed the weaknesses of the cryptocurrency industry's lending model.

The fifth point is the dispute between CoinFlex and Roger Ver.

Cryptocurrency exchange CoinFlex also suspended customer withdrawals last month.

However, he had one more reason, that is, cryptocurrency investor Roger Ver owed money and refused to pay it back.

CoinFlex claims Roger Ver is owed $47 million.