By The Numbers: The Worst Bitcoin Bear Markets Ever
23 Giugno 2022 - 01:00AM
NEWSBTC
Bitcoin is now officially in another bear market after the crash
that rocked the market last week. After falling more than 70% from
its all-time high, investors across the space had started to
retreat from the digital asset due to this new price trend.
However, trends like these are not new for bitcoin. Although the
present market may seem worse than previous ones due to it still
ongoing, there have been some brutal bear markets in the past. A
Blast From The Past It can often be helpful to take a look at the
previous market cycles for bitcoin to see that this is nothing out
of the ordinary. Yes, the bull and bear trends of this market have
deviated from what has been recorded in history but it still
remains very similar to what has been recorded in the past. For
bitcoin, the alternation between bear and bull markets has always
been part of the experience. It has been through several of these
boom-bust cycles in its 13 years in existence and it is not
expected to change anytime soon. Related Reading | Over $250
Million In Liquidations As Bitcoin Recovers Above $20,000 Bitcoin
has so far lost about 73% from its most recent cycle peak but it is
not the first time that something like this is happening. Looking
back to the November 2013 market shows that bitcoin had actually
continued to decline until it finally ended its 407-day losing
streak with a bottom at 85% of its all-time high value. This had
marked the end of that stretched-out bull market. For those in the
market, the 2017 bull-bear cycle is fresher in their minds compared
to 2013. However, like in 2013, the drawdown was just as brutal,
although lasting a shorter time. What had lasted for approximately
a year had ended with poor performance of an 84% bottom. BTC
bear markets are always brutal | Source: Arcane Research Since the
digital asset continues to maintain this trend closely, it is
expected that the drawdown will continue. Going by the previous two
examples, one can easily draw a conclusion that a historical
movement will see bitcoin bottom out in the mid -80s. Thus, the
bottom is most likely not in and the market is likely to see BTC at
$11,000 before the expected market bottom in late 2022. Will
Bitcoin Follow? While looking at previous movements can help point
a direction where the price of bitcoin might end up, there are
always new information and events that can heavily impact it. For
one, the macroeconomic atmosphere has been a big player in the
movement of the digital asset in recent terms. As fears around
inflation, fed rate hikes, and less liquidity circle the market,
bitcoin had been directly impacted by this. BTC enters bear market
| Source: BTCUSD on TradingView.com This has led to a more
intertwined market when it comes to bitcoin and the broader
financial markets. As the cryptocurrency space grows larger, it is
experiencing greater implications from the Fed decisions, stock
market performance, U.S. elections, and crypto regulations that
have been ramping up. Related Reading | Cardano Vasil Hard
Fork Launch Date Set, Time To Buy The News? Nevertheless, the
long-term play for bitcoin remains the best bet. As emotions run
high, bitcoin veterans take to accumulating and hibernating while
waiting for winter to pass. If history is anything to point to, by
the next bull market, the price of bitcoin could reach as high as
$200,000. Featured image from Forbes, charts from Arcane Research
and TradingView.com Follow Best Owie on Twitter for market
insights, updates, and the occasional funny tweet…
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