How will Bitcoin-boomers react to a typical January pullback?

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Last Updated on 4 January 2025 by CryptoTips.eu

The historical Bitcoin patterns show that a January pullback usually follows the year after the halving. You may not believe me because of all the bullishness you read all the time on other crypto sites, but I for one prefer to be cautious right now. I like to follow the old stock market adage: when in doubt, zoom out, aka look at the long term or at historical patterns to know what the future may bring.

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Halving

The 2016 halving was followed by a 30% pullback in January 2017, the 2020 halving was followed by the same 30% pullback in January 2021. Last year the halving took place in April.

This time things are a little different though. Bitcoin gained more than 100% in 2024, and has already fallen about 15% since its peak of $107,000 in early December. This means we could be in for another 15% drop in the next few weeks.

In addition, the ‘Bitcoin boomers’ have arrived since the beginning of last year. Thanks to BlackRock, Vanguard and other Wall Street giants, the Boomer generation has found its way into crypto investments via Bitcoin ETFs.

If Bitcoin were to start the new year with a dip, how well would they be able to calm their nerves if the dip goes lower than initially expected?

Generations

Well, that depends on their tolerance for risk of course. Historically, the boomers are risk averse.

Tolerance for risk per generation is shaped by their available assets as well as the events that the generation undergoes. Gen Z, for example, is having a very difficult time (compared to previous generations) and lives in a world of declining democracies and increasing autocracies. They lack long term dreams and aspirations. FOMO and YOLO are key messages for them and with a small investment amount they hope to get rich quick. A memecoin that falls 40% is perfectly acceptable if it rises 200% again two months later.

For Boomers (who are able to invest much larger amounts) the aftermath of the Second World War, the ‘golden fifties’ and the ‘swinging sixties’ were their formative period. It is therefore generally assumed that they can cope with a loss of maximum 15% on an investment, but become very nervous if the price falls further. It will be very interesting to see what the Bitcoin ETFs do if a Bitcoin pullback actually takes place this January.

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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