The price of bitcoin has just dropped below $50,000. It has not fallen below this level since the beginning of March and has therefore remained above it for almost two months in a row.
So far in the entire history of Bitcoin, the price of BTC has only been above $50,000 in two periods, namely between February 17th and 24th, 2021, and then between March 8th and April 22nd, 2021.
In particular, after reaching an all-time high of $64,800 on April 14th, it fell by 24% in nine days to $49,000 today.
Something similar happened in March 2017, but the loss was greater, although the timing of the collapse is similar.
It is worth noting, however, that in 2021 the price of bitcoin has always fallen in the last days of the month.
Bitcoin under $50,000, the other collapses of BTC
In January it went from $39,000 to $30,000, in February from $57,000 to $45,000, and in March from $61,000 to $51,000, so the current loss is perfectly in line with those of the past few months of this year, and of a similar magnitude for now to that of late January.
In the past, there have often been significant drops in the price of bitcoin just days before the expiration of BTC futures on the Chicago Mercantile Exchange (CME), and the next expiration is Friday, April 30th.
These contracts always expire on the last Friday of the month, and it is curious how the month-end declines often ended just before these contracts actually expired.
It is worth noting, however, that the bitcoin price has been showing some signs of weakness for almost ten days now compared to its mid-April high, so today’s drop did not come as a surprise to discerning analysts. It may also have been triggered by the news that new US President Joe Biden has proposed to increase capital gains taxation on the wealthiest people.
Particularly after Sunday’s sudden collapse, when the price fell from $59,000 to $52,000 in a matter of minutes, there was widespread speculation that this was not just an isolated episode but instead revealed a certain degree of difficulty, perhaps due to excessive growth in recent months.
On the other hand, from the beginning of the year until mid-April, the price of BTC had risen by 125%, and in the last 12 months the growth had even been over 800%, so it was plausible that there could be a correction.
The current price of $49,000 is still 70% higher than it was at the beginning of the year, suggesting that there may not be a full-blown crash, but only a retracement.