Worse Bear Plunges in Bitcoin MarketNovember 27, 2018
Bitcoin is facing the third bear market plunge. The decline is more than 80%. So far, Bitcoin has seen downtrends that have been as deep as 92% in 2011. The coin was leading by 84% in the year 2015.
The year 2018 has been the worse year so far. The market cap is currently at $700 billion. Bitcoin is only 10 years old; however, the coin has already faced a fair share of bear trends through the years.
The value of cryptocurrency went down below $3,500 in the past 14 months. The value regained at $3,900 on Monday. When compared to the peak value of the year 2017, the decline has been at 81%.
This is not the worse that the world’s largest cryptocurrency has suffered; however, the crypto is getting very close to the worse percentage in decline.
Back in the year 2010, when the cryptocurrency began trading for the first time, the cost of the Bitcoin was at a fraction of a penny. Those early investors who purchased the currency at this price were therefore wealthier.
In June 2011, the value of the Bitcoin rose to an all-time high at $30. The value went back to $2.50. This marked a 92 percent decline in the price of the crypto from their high. However, the volume during that year was not as high. And, the several trading exchanges that existed then did not exist then.
Way back then, about 70% of all the cryptocurrency transactions of the world were executed in the Tokyo-based Bitcoin exchange, Mt. Gox. Following the multiple hacks of Mt.Gox in the year 2011, there was a further decline in the price of the Bitcoin. This decline was the next worse bear market for Bitcoin in the year 2013.
Most of the Bitcoin trades from 2013 through 2015 suffered a decline when Mt.Gox was frozen out of the market effectively. They stopped trading. This happened because the US Banking system froze out Mt. Gox for regulatory issues related to the Banking System. They stopped trading, and they shut down their website and eventually filed for bankruptcy protection.
The price of Bitcoin went up above the $1,000 mark in the year December 2013. A couple of years later, the value was down below the $200 range. During these declines, the cryptocurrency met the 84 percent downtrend.
When looked at in terms of dollars, the damage of the crypto this year is very significant. Nearly $700 billion has been wiped out of the market. The price of one Bitcoin went below $15,000 ever since December.
Further, the cost of Bitcoin skyrocketed to an all-time high at $20,000 during December 2017. During the peak of the Boom, about 50,000 new accounts were being opened in a day. These accounts were opened mainly for retail investors. The all-time high that was achieved was due to the Bitcoin futures; however, the value of those products as well suffered a decline.
On Monday, this week, the price dropped to its lowest level ever since its launch. Anthony Pompliano, founder and partner of a crypto investment firm Morgan Creek Digital Assets, predicts an 85% decline from the all-time high.