With all the crypto market turmoil, I decided to take a look back at the last big crash which happened at the end of 2013. That crash, along with the news around the seizure of the Silk Road and the collapse of Mt. Gox were what finally drew my attention to Bitcoin, blockchains and cryptocurrencies.
I shared these on Twitter and elsewhere, but thought I’d put them in my blog and perhaps update as things progress with the current market correction. Comments are welcome.
Here is what the correction looked like on the way down. Notice that there were several big swings on the way down that raised a lot of false hopes. In the end, it took almost two years for the market to find a bottom point.
From there, the recovery was mostly steady but with plenty of drama along the way. Finally, about 3 years after the 2013 peak, bitcoin took three tries over three months to finally hold prices above $1100 again.
From there, bitcoin and most other cryptocurrencies went on a massive bull run that dwarfed the price action in the prior years.
You should be skeptical of anyone who seems certain about where we go from here. Every correction is different, and the space has changed a lot in those four years. But, it does seem possible that we are still in a downtrend and it may be a long time before we see steady gains again.