Two significant drops in the price of Bitcoin in one week, have caused serious panic among investors. Fortunately, there's plenty of data to remind us that bitcoin has been in this situation, and worse, before. And it has survived to this day. Two significant declines in Bitcoin's price within a week, caused serious panic among investors. Fortunately, there is plenty of data to remind us that bitcoin has been in this kind of situation before, and even worse. And it has survived to this day. Perhaps some of us remember the great Bitcoin bubble of 2011. While certainly far more people recall the situation in 2013. Back then, BTC had 2 big rallies upwards - at the beginning and at the end of the year. Each time these rallies were followed by declines, and many skeptics heralded the end of Bitcoin and the entire cryptocurrency market. In the charts above, we can see a parallel. Note that after each such correction, Bitcoin got back on track and recorded new ATHs. It is worth looking at the numbers. During the 5 month decline in 2011, BTC fell as much as 94% against the ATH. It then took as long as 19 months for it to reach a new peak. In 2013, history repeated itself. Within 2 days, Bitcoin lost 83% of its value, and 7 months later it recorded a new ATH. Of course, not to be boring, at the end of 2013 there was another decline in BTC, this time by 87%. Then to reach a new ATH, investors had to wait about 3 years. Of course, losing 80% of its value compared to the price in the second half of December 2017 is no reason to rejoice. Nor is it a harbinger of Bitcoin's demise, as we have seen similar market cycles several times before, not only in the cryptocurrency market. EToro senior analyst Mati Greenspan recently published a tweet in which he shows the colossal declines recorded by big players during the 2000 dotcom bubble. I'll just leave this here... pic.twitter.com/YsL0JRFAxA - Mati Greenspan (@MatiGreenspan) November 22, 2018 Of course, some of these companies never returned to their best form again. However, it is comforting to know that after a 98.7% decline, Amazon is up 37,000%. We have to remember that we are talking about 2 different markets, with different characteristics, but if we look at the current situation in the traditional stock markets, we can see the dominant red there as well. Critics have already proclaimed the death of Bitcoin more than 300 times in its 10 years of existence. However, it has survived this time and there is no reason for us to think that it will not survive 10 more. The last few months have shown that the cryptocurrency market is maturing, which has manifested itself in regulations introduced by governments and more interest from institutional investors, among other things. There are important events ahead, such as the creation of an ETP fund in Switzerland and the launch of the Bakkt platform for Bitcoin Futures. It is worth to be patient. Tags bitcoin bitcoin bubble bitcoin downturn bitcoin history bitcoin correction bitcoin exchange rate bitcoin forecast bitcoin forecast bitcoin exchange rate
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