Bitcoin and cryptocurrencies are at a critical point. On Sunday, bitcoin hit new intraday lows of $5,782, falling below the previous lows of $5,968 on February 6.
Bitcoin and cryptocurrencies are at a critical point. On Sunday, bitcoin hit new intraday lows of $5,782, falling below the previous lows of $5,968 on February 6.
The first crash happened over five days, dropping down to $10,876 (first point after the peak). bitcoin was down 45.3% from the all-time intraday highs of $19,871 on December 17, 2017.
In a more typical five to six-year stock bubble, the first crash averages 42% in 2.6 months. But this bubble was the most extreme in history, even topping the infamous tulip bubble of 1636. It took only 7.7 months to build from its bubble origin of around $1,339 on April 27, 2017 (first point on chart).
Interestingly if you notice the chart, Bitcoin rode a crescendo reach its peak in late 2017, which hindsight contributed to the euphoria in tech microcaps around the time (it was a once in blue moon super bull that is not likely to be repeated for a long while) and since its deflation, we have also witnessed pretty much carnage across the tech microcap space. Put in that context, the old highs of yesterday reached by most tech microcaps are unlikely to be ever tested again unless their business model gains considerable (yes considerable) traction within 6 months (beyond that, the general market including Dow would be up for very challenging times).
