Currently trading at less than $20,000, bitcoin likely hasn’t gained popularity among newbies. It has, however, won the hearts of traders who see HODL as a very effective trading strategy. Nevertheless, many are hoping for a reversal of the situation for this asset, which has undeniably become a safe haven.
Bitcoin, 1 year after its historic high
A year ago, more precisely on November 10, 2021 at 9:15 a.m. EST, bitcoin was approaching $70,000. This event will forever be etched in the history of cryptocurrencies. Admittedly, it was a short-lived epic, but the queen of cryptocurrencies has been wowing financial analysts since its appearance.
As reminder, bitcoin was trading at $0.09 a coin right after its launch in 2009. Its meteoric rise started from 2011 when it brought 2,960% gains to crypto traders. Slowly, but surely, the BTC gained in value on the market: its price in 2016 exceeded 900 euros.
A year later, it cost nearly $20,000 to get it. The year 2021 saw bitcoin offered at $40,000 as early as January. On April 13, 2021, BTC holders were ecstatic, their holdings valued at $63,000 per coin. November’s ATH is undoubtedly the most popular of all its records.
A descent into hell, but until when?
Bitcoin has this particularity that traditional investors do not appreciate: volatility. The Crypto Diary Cointegrah, in his November 10 post, did he not clarify that bitcoin’s valuation at $68,990.90 was only short-lived? There had indeed been a series of declines some time later. Losses were valued at up to $7,000 per coin on the same day.
The rise in the inflation rate, the decline in traditional markets, the growing interest of institutional investors could not prevent the bear market. And you certainly know the rest. At the time of writing this article, CoinGecko values bitcoin at $17,179.62. That’s about $50,000 in losses for enthusiasts at the time.
Right now, no-coiners are congratulating themselves on this proven bitcoin volatility. Those who continue to bet on gold like Peter Schiff miss no opportunity to denigrate the crypto-enthusiasts. On the other side, the pro-bitcoins continue to believe in it. For them, fiat like other traditional assets will not be able to withstand the rise in consumer prices, the loss of purchasing power and the recession so feared by experts for 2023.
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