Last week (March 12), the bitcoin and cryptocurrency market experienced its biggest single day dip in the last 7 years. The number one cryptocurrency had its price drop by 50% in under 24 hours; courtesy of panic sell offs due to the Corona (COVID-19) virus outbreak and a global economic meltdown which also saw stocks crash.
Despite these figures and negative prices across the coin market, there are key positives to the current state of the crisis. Let’s discuss below:
Following the extreme devaluation in prices of crypto assets, Bitcoin and other coins still did not hit zero (0).
For naysayers or non-coiners such as Peter Schiff who looks to capitalize on the volatility subject to discredit Bitcoin’s suitability as an asset, Bitcoin and cryptos look to have survived one of its biggest global financial threat since its creation in 2009.
Notably, in 2011 after the MT Gox hack, the post market crash was considered a huge one with doom predictions for BTC. However 9 years after the incident, Bitcoin has reached an all-time high in 2017 and still stands strong in the face of strong financial situations.
Bitcoiners can also take consolation from the effect on other markets, with stocks, gold, oil and commodities all feeling the corona-fueled effect. The current economic situation has also seen governments result to printing more fiat money to stabilize the drop of these markets; while the crypto ecosystem maintains its numbers.
At this time, Bitcoin’s upward trend is still intact despite talks of a dip below $3,000. BTC bounced from the 200 day MA with a higher low as it continues to reemphasize Satoshi Nakamoto‘s design plan – to create a digital currency resistant to economic storms.
If Bitcoin didn’t succumb this time, what worse scenario could trigger future sell-offs? Nada.
Prior to this time, many complained of the high coin prices, waiting for a perceived perfect drop to buy before the Bitcoin Halving in May.
The current market presents this opportunity on a platter of gold. Bitcoin, Ethereum, Tron, Litecoin, ChainLink and more are at very cheap prices, 57 days to the halving event.
Taking cue from Warren Buffet’s famous quote: “Be Greedy when they are Fearful, Be Fearful when they are Greedy,” these prices are sure giveaways before investors who sold in panic get back to FOMO of the BTC halving.
Altcoins are not left out of the discounts too with many tokens available at at unbelievable prices for bag holders.
Historically, after a massive price correction like the past week, a strong bullish uptrend follows.
In December 2018, Bitcoin hit a low of $3,121, by June of 2019 (6 months later) BTC hit $14,000. This long term scenario best serves holders and those who understand the cryptocurrency market.
At Friday’s low of $3596, we were still $470 dollars above the prior low, the 200 day MA support held, and FOMO buying of the dip by hodlers of last resort caused a nice bounce to $5200 region.
So although we might linger here for a moment, the worst appears to be over.
In all, the aftermath of previous BTC halvings – 2012 and 2016 have lead to new yearly highs, so with one a few months away in 2020, history supports a repeat of this scenario.
Did you take any other positives from the current market dip? Share in the comments.
NOTE: This publication does not serve as financial advice.
