Bitcoin (BTC) Price Bear Market Bubble is Only the 4th Worst Drop Recorded in Its 10 Year History
Bitcoin has been in a bear market since the beginning of the year. During the last weeks, its price has fallen even more to new year lows. This is why the whole cryptocurrency market is worried about what can happen in the near future with this virtual currency. Although it has been a hard year for Bitcoin, this is not the first time that this situation happened in the market.
Back in 2011, 2013 and 2014, there were different bubbles that burst leaving investors with a negative sentiment about virtual currencies. The twitter user DennisParker decided o upload a graphic in which it is possible to see past Bitcoin crashes. He shows that the current bear market has registered a correction of 80% since Bitcoin reached almost $20,000 dollars.
However, on past occasions, Bitcoin retraced 94% in 2011, 83% in 2013, and 87% between 2013 and 2015. In order to reach a new all-time high, it took 19 months in 2011, 7 months in 2013, and 39 months between 2013 and 2015.
— Dennis Parker⚡️[Jan/3🔑] (@Xentagz) November 21, 2018
This graphic shows that although we are in a bear market, an 80% decrease is not so bad compared to past bubbles. Nevertheless, this can also mean that we can still reach lower lows this year. According to Bloomberg analysts, Bitcoin could reach $1,500 before ending the bear market.
However, this is not the only analysis that can be made comparing Bitcoin to previous bubbles in the space. Mati Greenspan, a Senior Market Analyst at eToro, wrote a tweet in which he shows the percentage decline of stock companies such as Amazon, Cisco Systems or Priceline.com. Some of them lost more than 99% of their price between 2001 and 2002 when the dot-com bubble burst.
I'll just leave this here… pic.twitter.com/YsL0JRFAxA
— Mati Greenspan (@MatiGreenspan) November 22, 2018
It is important to mention that not all these companies were able to reach again an all-time high or recover. But for example, Amazon experienced a 98.7% drop and grew 37,000% years later.
At the moment, the market is in a very negative situation and it might not be the time to see a recovery. Nevertheless, in the near future, there are some events that could help Bitcoin to start to grow again as it happened in the past.
Currently, Bitcoin is being traded around $4,321 dollars and it has a market capitalization of $75.15 billion dollars. XRP, the second largest crypto in the market is being traded close to $0.41 dollars and it has a market capitalization of $16.52 billion dollars.