- After reaching an all-time high last month, Bitcoin had its first major pullback.
- The media is already calling this a bear market, and bears are calling it a bubble.
- It is a well-known script that has been repeated ad nauseam in the cryptosphere. Now is the time to believe
Bitcoin collapsed. If you’ve been in the crypto market for a year, you know this works as usual.
Bitcoin shoots up and then falls off. Then it usually shoots up again, then it falls off. The naysayers come out with every jump in the chorus saying it’s a bubble, a crash, and a terrible investment.
If you are new to the crypto game, get used to this refrain.
Bitcoin loses 20% of its value (again)
It’s been a volatile week in the worldand the world of cryptocurrency. According to CoinMarketCap, the flagship cryptocurrency rose from an all-time high of over $ 41,000 to under $ 31,000 in four days.
The monthly chart? It doesn’t look much better:
How defined by InvestopediaA bear market occurs when a market drops 20% or more. This decline is usually accompanied by “widespread pessimism and negative investor sentiment”.
Bitcoin recently lost 20% of its value. And there’s no shortage of bitcoin naysayers, even if the asset should skyrocket. So when CNN says The asset is in a bear marketis technically not wrong.
If you are new to Bitcoin or the crypto market, you know that this is a wild statement.
After all, Bitcoin has lost almost 20% of its value several times while this bull run.
In early September it fell from $ 12,000 to $ 10,000 in less than a week.
On November 24, 2020, Bitcoin rose from around $ 19,200 to around $ 16,700 in two days.
Three days later, it surpassed its all-time high. And now it’s worth more than $ 35,000 and the media is calling it a bear market.
Is this really a bear market?
As I said, there are plenty of people willing to demonize Bitcoin at any opportunity. When it drops steeply, they usually get the loudest.
Longtime Bitcoin cynic Peter Schiff took to Twitter to feed the flames:
Michael Harnett, the chief investment strategist at Bank of America Securities, said bitcoin was “the mother of all bubbles.”
Really, Michael? I thought the mother of all bubbles was in 2017 when the Atlantic called Bitcoin. “the most obvious bubble ever.”
In June 2020, Peter Schiff said anyone holding Bitcoin should have sold it at the height of this “bubble” because Bitcoin 2020 won’t even come close to an all-time high. It broke its all-time high in December 2020.
I would try to overshadow the cryptocurrency if I, too, had been as wrong as Peter Schiff.
While the recent charts may look precarious, let’s pull back and see where we are in the long run.
2017 may have been a bubble, but there haven’t been too many bubbles in history that burst, then re-inflated, and then went past previous highs.
And there haven’t been too many bear markets that aren’t even visible in a massive bull market.
What the others say
Crypto vets on Twitter laugh at CNN’s claim. They’ve been through it and they know we’re not in a real crypto bear market yet.
Nobody denies the volatility of Bitcoin and cryptocurrencies. But that’s exactly what it is because Given this volatility, we cannot simply say that Bitcoin is in a bear market.
If it continues to drop below its 2017 highs, maybe we can start the bear talk. But until that happens, let’s call it what it is: an immersion, a withdrawal, and a correction. Everything else is an exaggeration.
Disclaimer: The opinions in this article do not necessarily reflect the views of CCN.com.