Bitcoin (BTC) may have dropped 28% in recent days, but analysts have already firmly gauged the scale of the loss in context.
As Nathaniel Whitmore, host of The Breakdown podcast, noted on January 12, only for the period 2016-2017. In total, there were six corrections that were larger than this week’s decline.
BTC price correction continues until the end of 2017
2017 is known to market participants as a record year in terms of price dynamics. Apart from a 1,000% annual growth rate, Bitcoin faced many obstacles as it climbed to a record high of nearly $ 20,000.
“Fun fact: 6 funds were withdrawn on #bitcoin, which is over 28%, which we recently recorded in a record year of 1000% + growth in 2017,” commented Whittemore, citing a graph containing data from Travis Kling, CEO of Ikigais Crypto. Asset Manager.
As BTC / USD fell from new all-time highs of $ 42,000 to just over $ 30,000, well-known bitcoin volatility cash has returned from general economic sources and other critics. The subsequent jump to $ 36,700, which in itself broke the speed record, sparked accusations of market manipulation.
However, for long-term investors, these events are not new, which is reflected in the same way as the superficial behavior observed during other fees.
“In previous # cycles, bitcoin withdrawals in the 20% to 40% range took anywhere from one day to a little over a month to find a bottom,” Ecoinometrics told the in-chain analytics service, summarizing their own comparison tables on Monday.
“If you’ve waited so long to take the plunge, this is a good place to build as much as possible.”
Data comparing the fall in bitcoin prices. Source: Ecoinometrics / Twitter.
However, environmental studies have shown that historically, only 15% of total bitcoin price adjustments have exceeded the $ 42,000 decline.
Meanwhile, popular industry data confirmed that low price levels were little more than a buying opportunity for enthusiastic investors.
“It’s hard to believe that Bitcoin will grow 10% annually in 2021 this morning to $ 32,000. But that’s how it works. If you can’t deal with the crazy volatility, you can solve this problem with your position sizing. Preston Beach, co-founder of Investor Broadcasting Network, commented that morning traffic is a great shopping opportunity.