TL; DR
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The crypto market lost $190 billion overnight, but these kinds of corrections of 5, 10, 20 or even 40 percent are typical in the run-up to Bitcoin’s halving.
Full story
Ah, the irony…
Yesterday, as the crypto market traded sideways and volatility decreased, we wrote an article telling you:
“This is the calm before the storm (enjoy it while you can)”…
Since we published that article, the crypto market has lost a total market value of $190 billion, wiping out hundreds of millions of dollars in leverage.
(Leverage = loans people take out to buy more crypto – as prices fall, buyers are forced to sell their crypto to pay back their loans).
Waking up to see all the top 30 cryptocurrencies in the red is quite a shocking site… but we’re still optimistic!
This is why:
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Bitcoin fell below $65,000, a price we haven’t seen since last week (not that scary when you put it that way).
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Such 5-10% dips are normal during a bull run (in fact, in previous bull markets these dips have often been closer to 20-40%).
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Dips, corrections and crashes are an important part of this Bitcoin halving events (so this is just at the right time).
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Bitcoin has been in the green for the past seven months in a row – which is a new record! (And also means that we are heading for a red month).
The takeaway:
Although heartbreaking, this latest crypto market correction is timely (and mild compared to previous bull cycles).