Bitcoin

Bitcoin’s 28% drop in price isn’t even among the 5 worst in history

Bitcoin (BTC) may have fallen 28% in the past few days, but analysts have already put the magnitude of the losses firmly in context.

As noted on January 12th Nathaniel Whittemore, Host of The Breakdown Podcast, Only in the period between 2016 and 2017 were there a total of six corrections that exceeded this week’s reduction.

The BTC price correction is leaning towards 2017

2017 is known among market participants as a record year in price movement. In addition to the annual profit of 1,000% Bitcoin faced several hurdles as it rose to an all-time high near $ 20,000.

Bitcoin’s 28% drop in price isn’t even among the 5 worst in history
Bitcoin’s 28% drop in price isn’t even among the 5 worst in history

“Fun Fact: #bitcoin had 6 bigger pulls than our last -28% in the record year of 1000% + growth of 2017”Commented Whittemore, citing a chart with data from Travis Kling, CEO of Crypto Asset Manager Ikigai.

Corrections to the BTC / USD pair in 2016 and 2017. Source: Nathaniel Whittemore / Twitter

As the BTC / USD pair fell from its new highs of $ 42,000 to just over $ 30,000, Well-known criticisms of Bitcoin’s volatility from major financial sources and other critics returned. A subsequent rally to $ 36,700, a speed record in itself, sparked allegations of market manipulation.

The business remains the same for Hodler

For long-term investors, however Events are nothing new, and they reflect surface-level behavior observed in other bull runs.

“Over the past few cycles, it has taken # bitcoin declines ranging from 20% to 40% from a day to just over a month to bottom out.”, summarized the chain analysis service Ecoinometrics with own comparison tables on Monday.

“If you’ve been waiting for fall, this is the time to gather while you can.”

Comparative data of the Bitcoin price decline. Source: Ecoinometrics / Twitter

however, Ecoinometrics noted this historically Only about 15% of total Bitcoin price corrections exceeded the $ 42,000 decline

In the meantime, popular industry metrics affirmed this The lower price level was little more than a buying opportunity for avid investors.

“Over the past few cycles, it has taken # bitcoin declines ranging from 20% to 40% from a day to just over a month to bottom out.”, summarized the chain analysis service Ecoinometrics with own comparison tables on Monday.

“It’s hard to believe that Bitcoin was up 10% in 2021 and dropped to $ 32,000 this morning. But that’s how it works. If you can’t handle the crazy volatility then treat this problem with your position size.. I consider moving this morning to be a great buying opportunity. ” commented Preston Pysh, Co-founder of the Investor’s Podcast Network

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