Every Covid Wave Sees Faster Bitcoin Recovery
Last Updated on 6 December 2021 by CryptoTips.eu
We have been here before, is what those of us who’ve been following Bitcoin, Ether and other Dogecoin for a while now would say. A 20% fall of the entirety of the crypto market is nothing new and by now we don’t even panic anymore (at least if you diversify and are in it for the long run).
The absence of crypto market circuit breakers, like those that stock markets installed to trigger automatic stops whenever a combination of stocks falls 10% or more upon major industry news, makes for a very volatile market from time to time.
Jim Cramer, the Mad Money host, was reminded of that fact on Sunday in an argument on twitter with Anthony Pompliano.
You would have same issue if Zuck dumped large quantity of FB on the market. The only difference is there’s no circuit breakers to control volatility and Crypto is traded 24x7x365. @APompliano is 💯 right.
— Mohamed A. Hersi (@mohersi) December 4, 2021
Whether last Friday’s selloff was triggered by stock market related news, Omicron variant spread rapidity, the Fed’s planned tapering or the IMF comments is anyone guess at this point, but luckily there are lessons to be learnt.
We have been here before
The first is that during the 2016-2018 bull run of Bitcoin, the world’s biggest cryptocurrency corrected more than 20% no less than 7 times, so this is nothing new. The second is that the speed of Bitcoin’s recovery this time round is quite remarkable.
This happened six times in 2017: pic.twitter.com/6YVa1g2rw4
— Stephen Chow 🇺🇸☣️🎨 (@chowcollection) December 4, 2021
In fact, the speed of Bitcoin’s recovery, from a low of about $43,000 on Friday, to a temporary high of almost $50,000 on Sunday, means that with every new Covid wave, Bitcoin seems to recover faster.
A similar summary was achieved by Hitesh Malviya, founder of Itsblockchain, who commented in the India Times this weekend that:
The fact cannot be ignored that markets recovered more quickly than the last correction. It took six months to recover when the pandemic hit us and less than 2 months after the second wave.
The question that thus lingers at this point is, has Bitcoin taken a Covid vaccine or will we see further falls in December?
SergeyChayko / Depositphotos.com