Extending the period even further, bitcoin has grown by over 10,000% from five years ago and by 500,000% since 2011.
In addition to demonstrating bitcoin’s notorious volatility, these price movements have led some crypto market analysts to encourage investors, who may be alarmed by the latest price crash, to ‘zoom out’.
The cryptocurrency may have lost a third of its value since its record high in mid-April, but similar price drops were seen in previous hikes in 2013 and 2017.
Repeated patterns mean that some experts are even claiming that bitcoin is still on track to reach new highs in the months to come.
“At this rate of fall, bitcoin is expected to have support at $ 40,000 if the sell-off continues, and surviving this fundamental attack may create a new run that will set a new all-time high of $ 70,000 in the medium to long.” term, ”said Alexander Vasiliev, co-founder of the global payments network Mercuryo.
It’s too early to tell if the current bitcoin collapse is the end of the 2020/21 bull run, or if it’s just a dip on the way to even bigger gains, but the last time around As the price of bitcoin fell as low as $ 45,000, it rebounded above $ 60,000 in two weeks.
A recent survey of academics and cryptocurrency industry figures found that more than 95% believed the price hike would continue until at least July, with two-thirds predicting that the bitcoin would not peak until after October 2021.
Others have warned that the latest price drop is proof that cryptocurrencies are too risky an investment.
“The level of volatility means savers who choose to invest in cryptocurrencies should be prepared to lose all of their money,” he said. “At least when you’re at the bookies you have a real chance of understanding the outcome and the odds if you know horses or football. “
Part of the latest price drop was that Tesla announced it would no longer accept bitcoin payments, citing environmental concerns.
Crypto investors have slammed Tesla CEO Elon Musk for his comments on how the market is going, though the price has still been on the rise since he first announced that the electric car maker would introduce the crypto payments earlier this year.
Musk was even forced to counter rumors on Monday that Tesla had sold all of his crypto holdings. “To clarify the speculation, Tesla did not sell any bitcoin,” he tweeted.
This is an important distinction, because it suggests that Tesla still views bitcoin as a legitimate store of value, even if its credentials do not meet its expectations as a form of currency.
Bitcoin’s growing reputation as a form of ‘digital gold’ has been the main driver of the massive increase in institutional and retail investment over the past year, and many of the biggest holders appear to be on it. the long term.
Blockchain records show that a number of so-called ‘whales’ continued to bolster their investment by buying the price cuts, while Tesla had also previously said it would hold any bitcoin acquired through sales. as cryptocurrency rather than exchanging it for fiat currency.
“Once the dust settles and the emotions settle, we will all remember Tesla still holding its stack of bitcoins,” said Antoni Trenchev, managing partner at digital asset manager Nexo.
“Call it consolidation or build-up, bitcoin is getting comfortable and gearing up for the next step towards the next key figure of $ 75,000.”