How This Bitcoin Correction is Different From 2013
I’m in the same boat you are.
This correction is ugly, and I do mean ugly. It’s been several months that I’ve seen anything quite like this in the Bitcoin and cryptocurrency market. The closest thing I can recall is when Ethereum crossed into $400 territory and briefly trekked towards $500.
Out of nowhere, the crypto market took a massive hit, and the foregone conclusion of $500 Ethereum was now a pipedream. The digital token meandered around the $200 level for quite some time, eventually reaching $300 territory and, well…the rest is history.
Ethereum is holding onto the $1,000, whereas Bitcoin and most altcoin assets are in freefall.
The moral of the story here is don’t panic. Unlike the traditional stock market, the cryptocurrency sector is full of sharp corrections and even collapses that bring out your deepest fears. But HODL, and you’ll be rewarded.
Let’s take a trip down memory lane…
The Bitcoin Collapse of 2013
For some of you newcomers, you may be surprised to learn that Bitcoin first hit $1,000 not last year but in November 2013. The following month, Bitcoin added about a hundred dollars to that milestone, but it was short lived.
Moving forward, the crypto price fell in major thresholds, first to $900, then to $800. Each drop was of course accompanied by a spike bullish rally, but they never sustained. Eventually, long investors just gave up.
What followed was an unprecedented collapse in the cryptocurrency market. Bitcoin dropped down to a low of $199, or nearly an 83% hemorrhaging.
However, this stomach-churning price point turned out to be an investment of a lifetime. From that point onward until now, Bitcoin gained over 4,500%.
What We Face Today
In order for us to see the same kind of magnitude decline, Bitcoin will need to drop to $3,400. While I don’t guarantee anything, I really don’t think that will happen.
Here’s why: it all comes down to integration.
In the last Bitcoin collapse, nobody really cared about the crypto market, for it was really only two asset classes at the time – Bitcoin and Litecoin. Today, we have over 1,500 altcoin assets, each competing for your fiat currencies.
Moreover, the general public is clamoring for more information, and many of these become convinced at the blockchain opportunity. A clear example is the Robin Hood trading app, where CNBC reported that over a million people signed up for its upcoming crypto trading platform.
What the mainstream consistently fails to see is that the cryptocurrency rally isn’t just about the market valuation. It’s also about the public integration!
Without support and fees skyrocket and altcoins can do better what BTC is doing, close to $5000 is possible.
Whales have a lot to do with it.
So far keep on steemin'
You're right...altcoins could pull off a dramatic rally due to their lower entry point and seeing what has been done before!
Great point - though the price is dropping, integration is soaring!
The crypto space may not have even reached the early part of the growth phase. New entries are coming fast and will continue. Developing critical mass will bring in legacy institutional players. Don’t believe the BS about volatility keeping them out. They pray on volatility, and love it.
The maturity phase is at least several years away, and most importantly, new advances and real technological breakthroughs are coming fast into this space. That is value creation.
I think you're right; no need to panic about BTC or any of the other solid coins.
Check out Steem Dollars over the last 24 hours though! I sorted by gains and of all the coins taking losses, it's losing the least. Only 3 other coins are doing better. (this is just a snapshot, but still impressive)
coinmarketcap
That is impressive, although SBD has recently taken a hit of 11% or so...down to around $4.60. Still, it's doing better than I expected...would like to see it regain $5 soon.
True. It's had a rough last few days. I'm not sure it will be able to hold $5. We'll see though.
to hodl or not to hodl, that is the question.
At this point, it just makes sense to HODL; I think most everyone shares my opinion :)
I've been hodling my friend, that's the only option I have left. I am not willing to cash out for pennies on the dollar. I bought everything in Mid December like a fomoing moron and lost 30k in the process. Man I wish I had FIat to buy now. I can buy my entire portfolio over again for $5000
Sadly my heart might collapse before the crypto market does. Man is this stressful.
This is stressful, which is why if you're feeling that way, maybe take a break from checking the crypto prices for a few days...but, if I may provide some encouragement, the BTC is trudging higher as I speak.
Oh I am watching it and I stopped looking at my portfolio weeks ago, Its been a day of red for a long time in crypto terms. That's why I come to here and write and spend my days mining crypto. Sadly everything I mined dropped as well. I started mining BWK then it went to $16 than dropped to $6 I was minning TZC it went to .50 then dropped to .10 I am now mining GBX, it went to $80 now its not even $20.00 fml
I really doubt we will get lower than 5000$. It's possible, sure but pretty hard in my opinion.
I agree...too many people saw what happened on the positive end, so any discounts will be picked up.
What do you think about Nano(XRB)? Do you think it can replace Bitcoin?
very good analysis. it's hard to cry that bitcoin isn't pumping up to 50k right now like we all wanted to imagine in december, and early january... It's very strong, these dumps are great for anyone who has some cash to take advantage :) In the toughest time of the year for crypto, there isn't much to complain about, unless you became dependent on the market manipulations.
Where do you see it bottoming this time around?
My personal target is $8,000, but so far the market's looking much stronger than my pessimism :)
Feel free to check out my blog @maxdigi, this way we can support each other.
Cheers
maxidigi