The next Bitcoin price crash won’t be so dramatic

Now that Bitcoin has jumped over the $60,000 hurdle, there is plenty of speculation about future price corrections. Currently, analysts are positive about how these.

The discussion centres around the fact that Bitcoin’s price has a tendency to crash by 80% after a strong bull run. But there is a belief that is ending. According to a new report published by California-based hedge fund Pantera Capital, recent periods of BTC price drops have been less severe than in the past.

For example, in 2013–15 and 2017–18, Bitcoin crashed by as much as 83% after topping out near $1,111 and $20,089, respectively. However, the price corrections after the more recent bull runs (2019–20 and 2020–2021) were -61% and -54%, respectively. As a result, Dan Morehead, the chief executive at Pantera Capital, believes future price drops will be ‘shallower’. He said, “I long advocated that as the market becomes broader, more valuable, and more institutional the amplitude of prices swings will moderate.”

The current upswing for Bitcoin comes after the U.S. Securities and Exchange Commission approved the first Bitcoin exchange-traded fund (ETF) following years of rejecting similar investment products. Furthermore, it is believed that the approval of Proshare’s Bitocin Strategy ETF will make it easier for institutional investors to gain exposure in Bitcoin. This sentiment has driven the price upwards in the last few days and wiped out all the losses that occurred during April to July this year.

There is also a strong sentiment around Bitcoin reaching $100,000, with many analysts believing that might happen in 2022, or even by the end of this year, although that would represent an extraordinary bull run. For the moment, all eyes are on Bitcoin, and as one can see, the altcoin market is being largely overshadowed by that for the moment. No doubt that will change soon.

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LendoChain is a DeFi platform offering a suite of crypto-related services https://www.lendochain.com

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LendoChain

LendoChain

LendoChain is a DeFi platform offering a suite of crypto-related services https://www.lendochain.com

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