Bitcoin couldn’t have asked for more of a beating after reaching all-time highs in December 2017 and celebrating its ten-year anniversary this year. After touching $20,000 during last year’s parabolic price rise, Bitcoin’s value has slumped by over 81% in 2018.
This is the fourth time that the cryptocurrency has lost over 80% of its value in the past ten years. The last time it happened was in 2013-2015 when the prices fell by 85.4%. Before that, prices fell by as much as 93.8% in 2011 and 94.1% in 2010. Charlie Biello, Director of Research at Pension Partners, recently highlighted this in a tweet:
Largest Bitcoin Drawdowns…
1) Sep 2010 to Oct 2010: -94.1% ($0.17 to $.01)
2) Jun 2011 to Nov 2011: -93.8% ($32 to $1.99)
3) Nov 2013 to Jan 2015: -85.4% ($1,166 to $170)
4) Apr 2013 to Jul 2013: -76.4% ($266 to $63)
5) Dec 2017 to Today: -76.2% ($19,783 to $4,709)$BTC.X
— Charlie Bilello (@charliebilello) November 20, 2018
Over $700 Billion Wiped From the Crypto Market
With the major slump in crypto prices, the cryptocurrency market has wiped away about $700 billion from its market cap. The “crypto winter” of this year has been more devastating than the previous five corrections in terms of dollars.
For the first time in 14 months, Bitcoin went below $3,500 this month but recovered to $3,900 on Monday and currently sits at $3,652 today. This shows a more than 81% decline from its all-time highs. This hasn’t been the worse that Bitcoin has suffered in its 10-year lifespan, but if the market continues moving at this pace, that title wouldn’t be too far away.
Bitcoin’s Journey The Last Decade
If you are an early Bitcoin investor, you are certainly wealthier than you were in 2010. At that time Bitcoin was trading at a fraction of a penny. By June 2011, the cryptocurrency’s all-time high was about $32, but then it tumbled like a rolling stone, falling 94.1% and reaching $1.99. The volumes were very low, and we didn’t have as many cryptocurrency exchanges as we have today. AT the time, Mt. Gox was still a thing. The eventual fall of the Tokyo-based exchange led to another bear market in 2013.
Bitcoin shot up to around $1,166 in November 2013, but within two years, it retraced about 85.4% from the highs and came back to $170. There is a tendency for Bitcoin to reach all-time highs and then go to troubling lows after. However, the cryptocurrency has always managed to emerge stronger, will this crash prove to be the same?
The short-term outlook for the rest of the year doesn’t seem impressive for Bitcoin, regardless of its past performance and a strong community. Founder and partner at crypto investment firm Morgan Creek Digital Assets, Anthony Pompliano, is now predicting that the coin will fall 85% from its all-time highs and the next stop for Bitcoin could be $3,000 if his predictions come true. CEO of Civic, Vinny Lingham, also told CNBC that BTC could hover around the $3,000 mark for the next few months.
BTC Has Plunged Over 80% From Its Highs, but This Bitcoin Crash Is Not the Worst of Its 10-Year History was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.