HomeCryptoBitcoinBitcoin loses more than 70%

Bitcoin loses more than 70%

Bitcoin has been pronounced dead hundreds of times. Now with a 70% loss in value and an increasingly tight correlation to the markets, detractors are coming out of the closet, though even this time they won’t be able to celebrate.

Bitcoin collapses and investors lose confidence

bitcoin target
Bearish traders break out of the $ 20,000 target and confidence starts to falter

From its November 2021 highs to the present, Bitcoin has experienced six months of fire that have seen it disastrously lose 70% of its value

The problem is related to several factors. Some seem to be venturing as the crisis hits; others are novel. 

The digital currency has experienced volatile periods to a greater or lesser extent in the past, but never before have the swings been so wide. 

BTC is quite analogous to the stock market performance of a medium-sized company with two major differences

The first difference that is apparent even to the uninitiated is that Bitcoin is a currency and as such should perform similarly and it does not. 

The second major difference is that it is not a corporation and is not comparable in behavior in the markets. 

The lows reached and the lows already broken through have brought “digital gold” below $18,000, implying that this value range could be a first big step. 

The currency, according to analysts, has entered a full crisis as have the markets. Their correlation is increasingly pronounced, but there could be surprises. 

How is Bitcoin viewed in the medium to long term

The feeling is that it may have touched an initial step from which it may rise back to around $25,000 to $30,000, and then fall back and lateralize for a while until it returns to these levels. 

Futures also do not bode well, but the panic has not spread because of the currency’s soundness, its structure, the algorithm behind it, and the market’s confidence that blindly believes in a rosy future for the currency. 

For Bitcoin, and for the market as well, two more bearish years are expected, but there are those who swear that it could return as early as late 2023 above $200,000 shattering previous records. 

This is unknown, but certainly for now it seems to have abandoned the safe-haven asset role that so many have given Bitcoin. The view is broader and it is likely that unlike physical gold this may need a longer time frame (in years) to see significant growth that seems to be less steady and gradual and more fickle and large in terms of absolute values. 

George Michael Belardinelli
George Michael Belardinelli
A former corporate manager at Carifac Spa and later at Veneto Banca Scpa, blogger and Rhumière, over the years he has become passionate about philosophy and the opportunities that innovation and the media make available to us, in particular the metaverse and augmented reality