Gox exchange, only to be followed by a “stairway to hell” pattern that would take the price to $2.10 in a several months’ time.
Who wouldn’t want to stack some bitcoin at $30 dollars, right? Of course few back then could anticipate that in ten years, bitcoin would sit around $50,000; that’s why after that initial drop, it took more than a year for the price to recover and climb to new heights.
With two major bitcoin venues shut down and major losses sustained by their users, it seemed to some like bitcoin was dead and useless.
The most recent bear market is sometimes dubbed “the crypto-winter,” mostly because the major shakeout and a drop to the low near $3,000 came in the winter of 2018/2019.
But again, bitcoin recovered with vengeance and may never return below its previous ATH of $20k again.
Per the efficient market hypothesis, predictable and widely-known facts such as bitcoin halvings cannot affect the price in such a massive way – there are other unseen factors in place .
If this holds true in the future, it would mean that price wouldn’t go below $20k if we were to enter a bear market now, and it wouldn’t go below $69,000 if we breached that price level for a second time.
The market is continuously influenced by both local and global effects, such as the collapse of the Lebanese pound or COVID-19-related restrictions.
“Hey Joseph, what is this – just a bunch of historical charts and some barely working rules of thumb?” I know, I know.
Trading is a very stressful zero-sum game, where most people lose their money: a recent Business Insider article pointed out that between 70-97% of day traders end up losing their money! Only experienced traders and exchanges end up in profit.
There are two types of leveraged traders: those who have experienced the soul-crushing liquidation notice, and the naive who think they have everything under control.
During a tumultuous time such as a raging bear market, exchanges can end up insolvent.
Not many, right? The problem with betting on altcoins is there are just too many of them, and more and more projects are created on a daily basis with little more than sleek marketing going for them.
But in order to reap the full benefits, you have to have the conviction to hold in the hard times as well as the good times.
Seminal works such as Vijay Boyapati’s “The Bullish Case For Bitcoin,” Saifedean Ammous’ “The Bitcoin Standard,” or Parker Lewis’ “Gradually, Then Suddenly” were mostly written during the 2018-2020 bear market.
Bear markets offer a life-changing opportunity for many.