Why This Year’s Bitcoin Price Correction Will Be Shorter Than The One in 2014
Bitcoin is in a bear market since December 2017 when its price reached $20,000 dollars. Since then, the famous virtual currency have not recover to be traded at higher price levels. Quartz revealed a chart that compares the price of Bitcoin in 2014 and in 2018. And it seems that the movement on the cryptocurrencies this year may be substantially shorter than the correction experienced in 2014.
Between December the fourth, 2013, and January the 4th, 2015, Bitcoin was in a 400-day period in which the price lost 80% of its price. Until now, it was the worst and hardest correction in the history of this famous currency.
But it is possible to compare the speed of the drops in both years. In 2014, it took 300 days to drop more than 70%, while during this year, it took just 200 days. This shows that Bitcoin is falling faster than in 2014.
BitMEX CEO, Arthur Hayes, said on June the 30th that Bitcoin may see a bottom in the range $3,000 to $5,000 dollars and experience an 80% correction or more. At the same time, he said that Bitcoin could reach $50,000 dollars before 2019.
Mr. Hayes commented on the matter:
“Absolutely [BTC can reach $50,000 by 2018]. I think something that goes up to $20,000 in one year can have a correction down to $6,000. I think we can find a bottom in the $3,000 to $5,000 range, but we are one positive regulatory decision away, maybe an ETF approved by the SEC, to climbing through $20,000 and even to $50,000 by the end of 2018.”
Due to the speed of the downtrend and because the system is much more mature than back in 2014, the correction may end faster than the last time. Hayes explained that an unforeseen regulatory change in the US regulatory environment may drive the price of Bitcoin and other cryptocurrencies up again. For example, if a Bitcoin related ETF is launched in the market, that could be very positive for the industry.