No Surprises in Bitcoin’s Latest Price Drop
The first half of 2018 is noted as the worst for Bitcoin’s history. Barely short of 115 billion USD in market capitalization has been removed. About a portion of its price from the beginning of this current year is also no more. For those generally new to the ecosystem, it may appear like an opportunity to stop or possibly sell off what’s left of their underlying holdings. According to a recent study by financial information aggregator howmuch.net, there are indications that Bitcoin might possibly make a recovery.
“The latest Bitcoin crash has some investors believing the ‘end of days’ are near,” one analyst noted. “Once bullish ‘holders’ and committed individuals now voice their concerns and fears that this crash indicates that the cryptocurrency market may be faced with a new normal. While the latest crash has been painful, it is best to step back and assess the current state of Bitcoin relative to its past. Bitcoin has ‘crashed’ many times over the past several years, but how does this latest downturn compare to past steep sell offs?”
Making use of publicly available sources, it is easy to see that Bitcoin went through a drop many times before.
Looking at the Cryptocurrencies highs and lows, what is quite obvious is Bitcoin’s strength. Even though it is simple for one to notice the possible indicators pointing at the various recoveries, experts say the Cryptocurrency is able to withstand it given that “this is not an unusual event for Bitcoin.”
Since January 2012, there have been thirteen major corrections or crashes in Bitcoin, including this latest one. Losses have been as minimal as 30% and as severe as 87% during these Bitcoin panics. Compared to its past events, this latest correction was not even as severe or painful as it has been in the past.
Presently, the recovery looks to be in place with the asset’s trend. Analysts believe that crashes have become relatively common throughout the cryptocurrency market, which is known for its swift volatility.
In times of huge uncertainties, experts advise that it is important to turn to data and the facts in rather than relying on one’s emotions.