Bitcoin (BTC) has been standing since its all time high (ATH) in November 2021 deep into the minus. But as could already be read in the daily update this morning, analysts expect even deeper declines here and there. An analysis by Crypto Alliance on Cryptoquant shows that the current decline has not yet gone as deep as previous bear markets.
How deep does bitcoin dive?
In a short update, Crypto Alliance describes that the bitcoin price is trading about 67% below its current ATH at the time of writing. But compared to bear markets in the past, there may be even more declines to come. The analyst writes:
“Historically, during bear markets, BTC has fallen by an average of -75% to -90%. History tells us there may be more pain ahead.”
Most of these bear market declines in the past bottomed out after the price dropped about -75% to -85% in value. And with the current -67%, there may be even more pain to come.
In the end, history offers no guarantee for the future. However, it often rhymes. In short, it remains important to be careful in these harsh times!
Do you want to learn more about crypto and prepare for the future? Then come and take a look our Discord server!
Companies feel pain due to bitcoin decline
The pain can already be felt right now for some investors. Companies that have invested heavily in crypto, such as MicroStrategy, are seeing the value of their bitcoins slowly evaporate.
Tesla is at the top of this list, according to an overview yesterday on Crypto Insiders. The electric car brand bought bitcoin for an average price of $48,000. So it is now 56% in the minus.
And while MicroStrategy is also in the red, CEO Michael Saylor recently announced that this is the perfect buying opportunity. So we can expect more news soon that the company has bought bitcoin.