‘Nothing New for Bitcoin’
At 1 PM CET today, the price of Bitcoin rocketed up from just under $7000 to just over $8000 in less than one hour. It doesn’t take an expert market analyst to guess that such price action for the world’s dominant cryptocurrency the result of institutional investors with fat purses. According to a real senior market analyst, however, that’s almost certainly what happened — and what will continue to happen.
Mati Greenspan, senior market analyst at eToro, told Bloomberg yesterday that institutional investors are definitely buying the very predictable dip:
The dip […] is actually nothing new for Bitcoin, as far as percentage terms go. If we look at it historically, we’ve seen these types of pullbacks before. And definitely Wall Street is getting involved and they’re building the bridges as we speak.
What are those percentages Greenspan references, you ask? Well, as noted by Twitter user @APompliano, Bitcoin has seen drops of 94 percent, 87 percent, and 83 percent in 2011, 2013, and 2014, respectively — all of which were worse than 2018.
Bitcoin historical crashes:
2011: Bitcoin fell 94% 2013: Bitcoin fell 87% 2014: Bitcoin fell 83% 2018: Bitcoin fell ~70%
It wasn't a bubble. It was normal volatility. Everyone breathe. You can't kill an idea.