Bitcoin (BTC) may have plummeted 28 percent in recent days, but experts have also set the scale of losses squarely in perspective.
As Nathaniel Whittemore, host of The Breakdown Podcast, noted on January 12, the period between 2016 and 2017 alone saw a significant number of six corrections that were higher than the drawdown this week.
BTC price correction bows to 2017
2017 is popular among market observers as a record-breaking year for price activity. In addition to 1,000 percent annual gains, Bitcoin saw several challenges as it soared to an all-time high of nearly $20,000.
“Fun fact: #bitcoin had 6 pullbacks bigger than our recent -28 percent in the record setting 1000 percent + growth year of 2017,” Whittemore said, quoting a data chart from Travis Kling, CEO of crypto asset manager Ikigai.
As BTC/USD fell from a new record high of $42,000 to just over $30,000, familiar scepticism of Bitcoin’s volatility from conventional financial outlets and other analysts returned. The subsequent turnaround to $36,700, itself a record-breaking pace, in turn drew market manipulation charges.
Business as usual for hodlers
However, for long-term holders, incidents are nothing new, reminiscent of the surface-level actions seen during other bullfights.
“During the previous cycles, the #Bitcoin drawdowns in the 20 percent to 40 percent range have taken anywhere from a day to a little over a month to find a bottom,” Ecoinometrics’ on-chain analytics tool summed up with its own comparable charts on Monday.
“If you were waiting for the dip then it is the occasion to accumulate while you can.”
Ecoinometrics however observed that historically, only about 15 percent of Bitcoin’s overall price corrections have exceeded the $42,000 drop.
Popular market leaders have meanwhile repeated that lower price prices led to nothing more than a purchasing incentive for zealous buyers.
“It’s hard to believe Bitcoin is up 10% year to date for 2021 this morning at $32,000. But that’s how this works. If you can’t handle the crazy volatility, then manage that concern with your position size. I’m treating this morning’s move as a big buying opportunity,” Preston Pysh, co-founder of The Investor’s Podcast Network commented.
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