The Price of Bitcoin and Its Effect on Altcoins
Let’s examine the price of Bitcoin from a historical perspective.
Since 2009, the price of Bitcoin has undergone five important falls of more than 50%. This includes the 2018 decline of 82%. In 2020 Bitcoin recovered more than 50% of that loss, you can use the bitcoin price calculator at https://bitcoincalculator.org/ to findout exactly how much Bitcoin is worth at this moment. Usually, each brutal price fall was finally followed by a brand new all-time historical high.
Needless to say, the main question is: “Did BTC create a significant bottom in December 2018?” The best way to find an answer is to analyze the historical prices for Bitcoin.
In percentage terms, Bitcoin’s average major price fall is 74.8%. Therefore, the present price decline has surpassed the normal decrease by 7.3%. According to this information, Bitcoin hit its bottom in December 2018.
However, we have to remember that BTC dropped by 92.4% back in 2011. So it is still theoretically possible for Bitcoin to fall to about $1,500. However, it appears to be highly unlikely that the Bitcoin price will fall to a new low of $1,500. The quantity of Bitcoins and price is much higher now than it was in back 2011. It would be almost impossible to push the Bitcoin value so low.
Whether we like it or not, Bitcoin influences altcoins and the rest of the cryptocurrencies. Bitcoin is the leader of this crypto universe.
It is not uncommon to see $20 billion in daily trading volume and tokens. On a normal day, Bitcoin represents approximately 53 percent of the complete volume. Consequently, Bitcoin certainly influences another cryptocurrencies.
We should expect altcoins to continue to be in a bear market. This is precisely what we’re experiencing with the most common token. The token’s purchase price has been falling for the last six weeks.
Needless to say, all of us want to know when the altcoins will form a significant bottom and then enter a new bull market. Giving an exact answer is impossible. But, an bottom will be probably generated by altcoins soon.
Nobody likes to “hodl” in a bear market, but bear markets are a part of the investment cycle. While the bear market turns into another bull market, the best strategy is to stay patient. Regardless of the drop in Bitcoin or altcoins, the future seems bright for the crypto market.
We’ve witnessed recently a new increase in the price of Bitcoin. So, even if many crypto investors and traders were quite surprised by this huge decline of Bitcoin price a couple of years ago we are now on a bullish trend again. Lots of investors from the cryptocurrency community were quite optimistic before and were anticipating the price of Bitcoin to move up for the next several decades.
There will always be declines on the way like what we are experiencing with Bitcoin and altcoins.
According to my analysis, I feel that the entire crypto world is at a multi-year bull market that could extend to the 2030s. Including tokenization, blockchain technology and cryptocurrency trading.
The entire process could take two decades to unfold. There will be bull markets and bear markets on the way. I wouldn’t be surprised if the present bear market will last slightly longer than many traders are now anticipating. We can certainly expect that the bear market will be transformed into a bull market.