Bitcoin began November trading at an average price of £4,968 ($6,341). But bitcoin is trading at just £3,106 ($3,964), as of midnight GMT on December 1, according to CoinDesk.com. This £1,880 drop in value has created a -37.4 percent monthly performance – the worst on record since August 2011.
However the co-founder and CEO of crypto exchange and wallet provider CoinCorner is sanguine about bitcoin’s prospect, based on data which typically goes unnoticed by anyone outside of the blockchain industry.
Danny Scott said: “We’re not concerned about Bitcoin’s price plummet this month.
“If we look back over Bitcoin’s short 10-year history, it has experienced many price fluctuations – something that is to be expected given that the industry is still very young.
“It’s widely known that Bitcoin has allegedly ‘died’ more than 300 times to date.
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“This ‘death’ refers to predictions from critics that bitcoin won’t survive the changing price movements – yet it has not died on any of those occasions and, instead, has continued to gain mass adoption.
“There have been a number of sizeable price movements over the years which have typically gone unnoticed by anyone except those within the industry.
“For example, in 2013 we saw the price drop 49.88 percent in just 14 days, which is a bigger drop than the one we have experienced over these last two weeks.
By looking at Bitcoin’s historical price movements, we can all clearly see that price movements such as the most recent one this month, are nothing out of the ordinary for the Bitcoin industry.
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“It isn’t something we are concerned about at CoinCorner”.
Crypto-assets have a reputation of oscillating wildly between periods of peaks and troughs
Bitcoin’s first bubble – in July 2010 – provides the quintessential example.
Lacking anywhere to exchange their newly acquired digital assets combined with fears about the enterprise’s legitimacy, a bitcoin fire sale broke out.
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Lacking anywhere to exchange their newly acquired digital assets combined with fears about the enterprise’s legitimacy, a bitcoin fire sale broke out.
This drive the BTC price down to a low of just £1.68 ($2.14) by November 2010 – a calamitous 93 percent drop within six months.
At the depths of their despondency, even the most diehard believers were left doubting their commitment to cryptocurrencies.
Analysts broadly believe current concerns around regulation, manipulation, and adoption present a dismal outlook for bitcoin and related cryptocurrencies.
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But these same people also remember dial assets have survived similar periods of turbulence.
The present bear market closes matches the percentage downturn of previous major bear markets.
But bearish sentiment and periods of downturns from highs have historically presented strong buying opportunities for Bitcoin and the crypto-assets space in general.
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