Compared to some of the panics during the early days of bitcoin, the pioneering cryptocurrency’s 60%+ slide since the beginning of the year hardly register at all.
In the nine-year history of the cryptocurrency, which introduced the “revolutionary” blockchain technology to the world, osses have been as minimal as 30% and as severe as 87% during these Bitcoin panics. And compared with some of its previous dips – like the Mt. Gox-induced selloff in February 2014 that effectively ended the firs speculative bubble in the cryptocurrency after it officially went mainstream.
The latest correction took place between Dec.17 and Feb. 6, or 48 days, in which 70% of Bitcoin value was lost. However, if you look at the period between April 10, 2013 and April 12, 2013, Bitcoin lost an astounding 83% of its value over a three-day period. Talk about a panic! The point is that crashes have become relatively common throughout the cryptocurrency market, which is known for its swift volatility. It is important to turn to data and the facts in times of turmoil, rather than relying on one’s emotions.
Using the BitStamp Bitcoin-to-U.S.-Dollar (BTC/USD) pair, HowMuch measured the specific highs and lows of the past crashes dating back to January 2012. In the chart below, the arrow delineates the magnitude of the crash – while the number of days is listed below:
As US stocks sold off again Friday, capping off the worst two-week selloff since 2009, bitcoin has climbed, as worries about a resurgence of inflation have rattled investors, making the inherently deflationary bitcoin that much more attractive.