Bitcoin May Be Rumbling, Bumbling and Stumbling, But Has BTC Finally Reached a Bottom?


November 2018 saw Bitcoin face one of its roughest economic patches since its inception nearly a decade ago — with the premier alt-currency scaling down to record lows, thereby leading many experts to believe that the altcoin was on the verge of extinction.

However, over the course of the past week or so, the digital currency is once again rallying hard and has just crossed the $5k mark, thus proving many of its detractors wrong (once again).

With all of this information in mind, many observers are now beginning to ask the question

“Has BTC finally Reached a Bottom?”.

A Closer Look At The Matter

At this point in the article, we should compare how BTC’s crash from last year compares to some of the other major post-bubble downturns from the past century.

While a number of crypto proponents have continued to say that Bitcoin’s recent 70 percent rebound is indicative of a fresh new bull run, detractors have maintained that nothing within the currency’s ecosystem has changed so as to make it more appealing to Wall Street players as well as other mainstream investors.

However, both factions need to understand that due to the nascency of this burgeoning domain, it is hard to evaluate the future of this market with any level of scientific precision.

HIstorically Speaking

When taking a look at some of the most notorious economic bubbles from the last century, we can see exactly how the 2017 BTC bubble stacks up in comparison to the surge experienced by the Japanese stock market all through the 1980s as well as the 2006 US housing boom.

Crash Course

Using the above-mentioned chart, we can quantify Bitcoin’s post-bubble crash with other speculative manias from the past. For example, it is clear that the 84 percent peak-to-trough slump in Bitcoin is more severe than the one witnessed after the Nasdaq bubble of 2000 or even the oil boom of 2008.

Other Key Takeaways To Bear In Mind:

  • BTC’ five-year gain leading up to its eventual ATH value lays at a whopping 140,000 %.
  • Similarly, the flagship currency’s 12-month slump played out longer when compared to the 2015 Chinese stock market crash.
  • Historical indicators suggest that if Bitcoin has in fact bottomed out, the currency could be faced with the possibility of a tremendous financial upsurge in the near future. For reference, we can see that the Nasdaq more than doubled within a five-year span following its post-bubble low (the same can also be said for the dot-com mania of the early 2000s as well).

Final Take

In closing out this piece, it should be pointed out that for users betting on the fact that BTC has bottomed out, they should remember that after the Japanese stock bubble burst in 1989, the Nikkei experienced a “series of sharp rallies” which then petered out into new lows that lasted all the way until 2010.

https://bitcoinexchangeguide.com/bitcoin-btc-ethereum-eth-and-litecoin-ltc-price-predictions-todays-crypto-market-analysis/

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