Bitcoin (BTC) may have dropped 28% in the past few days, but analysts have already put the scale of losses in context.
As noted on January 12 by Nathaniel Whittemore, host of The Breakdown Podcast, the period between 2016 and 2017 alone saw a grand total of six corrections that were greater than this week’s reduction.
BTC price correction leans towards 2017
2017 is famous among market participants as a record year for price action. In addition to the 1,000% annual gains, Bitcoin saw several obstacles as it rose to a maximum of almost $ 20,000.
“Curiosity: #bitcoin had 6 setbacks greater than our recent -28% at a record 1000% + growth in 2017,” commented Whittemore, citing a chart with data from Travis Kling, CEO of crypto asset manager Ikigai.
As BTC / USD fell from new records from $ 42,000 to just over $ 30,000, familiar criticisms of Bitcoin’s volatility from conventional financial sources and other critics have returned. A subsequent recovery to $ 36,700, the speed record itself, in turn attracted complaints of market manipulation.
Business as usual for hodlers
For long-term investors, however, the events are nothing new, echoing the superficial level behavior seen during other bullish races.
“During previous cycles, #Bitcoin withdrawals in the range of 20% to 40% took from one day to just over a month to find a fund”, online analysis service Ecoinometrics summed up with own comparative charts on Monday.
“If you were waiting for the dive, then this is the time to accumulate while you can.”
Ecoinometry, however, noted that, historically, only about 15% of Bitcoin’s total price corrections have exceeded the $ 42,000 drop.
Meanwhile, popular industry data has reiterated that the lower price levels represented little more than a buying opportunity for zealous investors.
“It’s hard to believe that Bitcoin has gone up 10% in the year to date in 2021 this morning at $ 32,000. But that’s how it works. If you can’t handle the crazy volatility, then manage that concern about the size of your position. the morning shift as a great buying opportunity “, Preston Pysh, co-founder of The Investor’s Podcast Network commented.