Changpeng Zhao, CEO of Binance, the world’s largest cryptocurrency exchange in terms of trading volumes, said that the recent decline in Bitcoin’s price is classically normal.
Bitcoin, the world’s largest cryptocurrency by market capitalization, has recently reached its’ three-month low. At press time, Bitcoin is trading at the $6,400 level according to CoinMarketCap.
Despite the price drop, the CEO of the largest cryptocurrency exchange remains calm, noting that there is nothing strange about the current price correction.
“Many people seem to think BTC price was flat before this year, as they appear to be on the graph. To the old timers, it’s the same pattern every year. Just the units on the left are different.”
Many people seems to think BTC price was flat before this year, as they appear to be on the graph. To the old timers, it’s the same pattern every year. Just the units on the left is different. pic.twitter.com/mwu8U3jn0J
— CZ (@cz_binance) June 10, 2018
In his tweet, Zhao shared a few graphs that display significant similarities in the behavior of the world’s largest cryptocurrency year on year since 2012. Although, he also notes that even with these substantial price corrections, the key factor to account for is the substantial progress of Bitcoin’s price throughout the years, which is what he was referring to in saying “the units on the left.”
Claims with Merit
People can see the movement of Bitcoin from 2012 onward in Zhao’s tweet. Looking closer at the numbers shows that ever since 2010, Bitcoin has regularly gone through bigger corrections than the current decline.
In 2010 from the 14th of September until the 8th of November, BTC went on to lose 94% of its value.
In 2011, on the 8th of August on the 17th of November, Bitcoin’s price dropped from $32 to $2, marking another 94% blow.
On the 30th of November in 2013, it traded for $1166 only to drop down to $170 after more than a year, marking another substantial 85% decrease.
January 7th was Bitcoin’s 2018 all-time-high (ATH), where it traded for almost $20,000 according to CoinMarketCap. This shows that since then, BTC has lost approximately 61% of its value.
A Common Result
Whether or not Bitcoin will continue to freefall or it has already reached rock bottom is something that time alone can show. Well-known analyst Tone Vays stated that $4975 is an “optimistic” bear market price scenario. On the other hand, permabull Tom Lee seems to hold his ground firm on $25k year-end price.
Nevertheless, if there is something that history tells us, it is that regardless of how huge the hit Bitcoin takes, Bitcoin’s price always recovers, and each time it does, it always improves.