[18/5/2021] Bitcoin is in the midst of a “historically significant correction.” What comes next?
In brief
- Bitcoin is undergoing a “historically significant correction,” Glassnode argues today.
- This is in part because of inexperienced investors panic-selling, the firm says.
- But long-term investors aren’t bothered—and see it as an opportunity.
Bitcoin’s latest price slump has got investors sweating. Do they have reason to worry? Not if you’re a long-time holder looking at the bigger picture, argues blockchain analysis company Glassnode in a report today.
The weekend dip—with Bitcoin trading down 26.1% over the course of the week—is the deepest correction the current Bitcoin bull run has experienced, says Glassnode.
Corrections, though, are common in the world of investments, and Bitcoin is no different. Whenever a market runs too hot, you can expect it to cool down until an equilibrium between buyers and sellers is met again.
But with Bitcoin now trading at 28% below the US$63.6k all-time high set on April 13, could we be entering another bear market? Not necessarily, according to Glassnode data, which notes that Bitcoin has experienced comparable pullbacks in the not-so-distant past. [read more]
