BTC has dropped to its lowest level since July 2021, with the crypto market losing $1.7 trillion in the previous six months.
Bitcoin’s value has plummeted. Again. The cryptocurrency is down more than 50% from its all-time high set only six months ago, with investors fearful that if a crucial resistance level is passed in the next days, the fall may be considerably more catastrophic.
However, history shows that it will not remain down indefinitely, whatever way it goes from here in the near run. According to one site that records bitcoin obituaries, the death of bitcoin has been announced more than 400 times in the media, most recently in a story in the Spectator headlined “Crypto is Dead.”
“Cryptocurrencies risk a slip towards oblivion, not so much a sudden collapse,” it stated. In 2019, the same journal labeled cryptocurrencies as “scams,” saying that “anyone who invests any money in them and loses it all is solely responsible.” Bitcoin was valued just over $3,000 at the time, roughly a tenth of its current value.
The obituaries frequently correspond with significant market corrections, which are usually followed by even more significant price rallies. Six times in the previous decade, the value of bitcoin has dropped by 50% or more. Within a few of years, it has risen to a new all-time high each time.
The causes of these collapses may vary from pandemics to statewide crackdowns on cryptocurrencies, however they have lately shown to correlate with regular market moves. Crypto has gotten more in pace with the stock market, especially tech equities, as more ordinary investors join in and current financial infrastructure is more integrated, allowing institutional investors to participate.
It’s little surprise that bitcoin and the larger crypto market took a knock when Nasdaq saw its worst one-day drop since June 2020 this week.
