This One Chart Will Change The Way You Look At The Recent Bitcoin Crash
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This One Chart Will Change The Way You Look At The Recent Bitcoin Crash

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The cryptocurrency space has taken a beating over the last few weeks. Bitcoin (BTC) is down 65% on highs. Ethereum (ETH) is down just shy of 50% across pretty much the same period. If you factor in the pre-South Korean removal prices from CoinMarketCap, Ripple (XRP) is trading at a more than 80% discount to its early January highs.

But here’s the thing: this is a severe correction, sure, but it’s far from the bubble bursting that many are calling.

What’s important to recognize is that those people that have lost money (the only people that have lost money) are those that entered the markets over the last eight weeks or so. Everyone else in the markets have made money.

In other words, it’s only the newer entrants that are sitting on net losses.

Interestingly, it’s the same people that have been hyping this market and that now are claiming its crashing and burning.

CNBC, Bloomberg, etc., were at the forefront of those outlets pushing people to jump into the markets and buy bitcoin, or Ripple, or whatever, as prices ran up in December. And now, it’s these outlets that are fielding so called experts claiming crypto has had its time.

So how does anyone holding bitcoin or other coins deal with the current crash?

Well, take a look at the chart below.

source

Look familiar? Probably not – it’s the first real collapse we ever saw in the bitcoin price and it happened back in April 2013.

At the time, the price ran up to $260 and then collapsed to a little over $40 within a few days.

But here’s the interesting thing. This period (the end of the third quarter, 2013) coincided with the first time bitcoin started to attract any sort of mainstream media attention. The attention pushed price up as a wave of speculative new money entered the market.

The wave of extra attention pushed the price up and up until it hit an inflection point, the price started to fall and all of the media outlets that caused the run by touting bitcoin to new buyers changed their opinion, called for the death of bitcoin and created a crash.

So, we’ll ask again – sound familiar?

The only difference this time around is that we’re talking about tens of thousands of dollars as opposed to hundreds of dollars in valuation.

The key thing to recognize here is that whatever anyone says, this is far from unprecedented in the bitcoin space and – indeed – it’s something that we’ve seen happen almost to the note, on a number of occasions in the past.

Last time around (so, going back to April 2013), markets took around 7 months to recover. Exactly how long the recovery is going to take this time around is anyone’s guess – it could be longer, because we’re talking about higher per-coin pricing, or it could be shorter based on the dramatically increased daily volume and external interest in the space that exists right now as compares to April 2013 – but that things will recovery is far from a guess.

There are only two sensible things to do at current prices, then.

First, delete Blockfolio (or at least stop checking it every few hours) and ride out the dip. Let the panic sellers exit at the wrong time, do nothing and wait for the price to turn around.

Second, buy buy buy.

We will be updating our subscribers as soon as we know more. For the latest on BTC, sign up below!

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency.

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3 Reasons Why WISE Token Could Be a Massive Winner in 2021

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WISE token

After working in proprietary trading for over a decade, I decided to transition to crypto in early 2017.  Although crypto is significantly different from traditional capital markets, I managed to successfully find a niche for successful and opportunistic trading.  While 2017 was the perfect time to get involved, the past few years have proven to be a bit more challenging as far as generating ROI.

Cryptocurrency traders have spent the past several years searching far and wide for the next big winner.  While the market as a whole hasn’t been very bull friendly, one specific area that appears to be gaining traction is decentralized finance, more commonly known as DeFi.  This area generally refers to the digital assets and financial smart contracts, protocols, and decentralized applications (DApps) built on Ethereum.  The reason why so many crypto entrepreneurs are flocking to this space is that it allows them to create traditional financial vehicles in a decentralized network, outside the meddlesome control of foreign governments.

One extremely popular DeFi project is Chainlink (LINK) which is a decentralized oracle network that provides real-world data to smart contracts on the blockchain.  Chainlink has seen its token price increase by more than 300% year-to-date.    Another impressive project in the space is Kyber Network (KNC) which has seen its token soar from $0.20 at the start of the year to more than $1.60 at present.  Kyber Network’s on-chain liquidity protocol allows decentralized tokens swaps to be…

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Bitcoin

The Pros And Cons Of Cryptocurrency

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cryptocurrency

Many facets of our lives are now digitized––money is no exception. 

Have you noticed that paper money is on its way to being obsolete because so many people receive direct deposit and love the simplicity of their debit card? 

Not to mention, cash carries germs, as we’ve heard lots about during the pandemic. Many businesses have turned to card only options in light of this. 

But what about cryptocurrency?

You probably heard everyone raving about it a few years ago, but the excitement’s calmed down quite a bit. That doesn’t mean that it’s not a viable option you should keep in mind. 

What’s Cryptocurrency? 

Let’s start with the basic definition of cryptocurrency so we’re all on the same page. Cryptocurrency utilizes cryptographic methods and complex coding systems to encrypt sensitive information during data transfers. This protects your funds and personal information on a whole different level. 

These transactions are virtually impenetrable due to the combination of mathematical and technological protocols created and put in place. This aspect of cryptocurrency is what makes it safer. Also, the details of transactions are kept private. No one can see who sent what, etc., because those rigorous mathematical and technological protocols protect it.

The Pros: 

Different From Traditional Banking Transactions

One thing people hate about traditional banks is the fact that they can…

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Bitcoin

As Global Tensions Grow, Bitcoin Price May Go Higher

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BTC Surged Again as A Safe Haven Asset During Global Tensions

  • India – China Border Conflict

After weeks of squabbling and brawling along their long-disputed border, hundreds of Indian and Chinese soldiers engaged in a deadly clash Monday in a river valley that’s part of the region of Ladakh last week. Troops had massed on both sides of the border in recent months in the northern India region of Ladakh and the southwestern Chinese region of Aksai Chin, causing global concerns of a potential escalation between the two.

  • North and South Korea Clash

Last Tuesday, North Korea destroyed the liaison office it jointly operates with South Korea in the city of Kaesong, just north of the demilitarized zone that separates the two countries. 

North Korea also said it would send troops to now-shuttered joint cooperation sites on its territory, reinstall guard posts and resume military drills at front-line areas in a violation of separate 2018 deals with South Korea. Jeong said South Korea will take “immediate, swift and corresponding” steps to any North Korean provocation.

The tensions grown in Asia and the potential “second wave” of coronavirus in the United States may add more difficulties to the global economic recovery. Thus, Bitcoin, as a safe haven asset, attracts more investors to buy and hold. 

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