I’m in the same boat you are.
This correction is ugly, and I do mean ugly. It’s been several months that I’ve seen anything quite like this in the Bitcoin and cryptocurrency market. The closest thing I can recall is when Ethereum crossed into $400 territory and briefly trekked towards $500.
Out of nowhere, the crypto market took a massive hit, and the foregone conclusion of $500 Ethereum was now a pipedream. The digital token meandered around the $200 level for quite some time, eventually reaching $300 territory and, well…the rest is history.
Ethereum is holding onto the $1,000, whereas Bitcoin and most altcoin assets are in freefall.
The moral of the story here is don’t panic. Unlike the traditional stock market, the cryptocurrency sector is full of sharp corrections and even collapses that bring out your deepest fears. But HODL, and you’ll be rewarded.
Let’s take a trip down memory lane…
The Bitcoin Collapse of 2013
For some of you newcomers, you may be surprised to learn that Bitcoin first hit $1,000 not last year but in November 2013. The following month, Bitcoin added about a hundred dollars to that milestone, but it was short lived.
Moving forward, the crypto price fell in major thresholds, first to $900, then to $800. Each drop was of course accompanied by a spike bullish rally, but they never sustained. Eventually, long investors just gave up.
What followed was an unprecedented collapse in the cryptocurrency market. Bitcoin dropped down to a low of $199, or nearly an 83% hemorrhaging.
However, this stomach-churning price point turned out to be an investment of a lifetime. From that point onward until now, Bitcoin gained over 4,500%.
What We Face Today
In order for us to see the same kind of magnitude decline, Bitcoin will need to drop to $3,400. While I don’t guarantee anything, I really don’t think that will happen.
Here’s why: it all comes down to integration.
In the last Bitcoin collapse, nobody really cared about the crypto market, for it was really only two asset classes at the time – Bitcoin and Litecoin. Today, we have over 1,500 altcoin assets, each competing for your fiat currencies.
Moreover, the general public is clamoring for more information, and many of these become convinced at the blockchain opportunity. A clear example is the Robin Hood trading app, where CNBC reported that over a million people signed up for its upcoming crypto trading platform.
What the mainstream consistently fails to see is that the cryptocurrency rally isn’t just about the market valuation. It’s also about the public integration!