Bitcoin has been declared as experiencing the longest period of price decline since its inception ten years ago.
Bitcoin Bottom Expected Soon
The world’s first Cryptocurrency, and the one with the highest value, reached its highest price of $19,764 in the last quarter of 2017. Since then the Cryptocurrency has been continually seeing lower price highs with today being the 413th day its prices has been on the decline consecutively. This latest stretch has beat the previous bear market of 2013-2015 which saw Bitcoin experience a price decline stretch spanning 410 days.
Although the current stretch is the longest to ever be experienced by the digital currency, it has not yet been the worst when it comes to the level of depreciation. The bear market experienced in 2011, even though only lasted for 163 days, is by far the worst in terms of price depreciation to date.
During this period, Bitcoin’s price dropped from $31.50 to a low of $2.01, this being a 93% decline in prices. This is higher than the 86% price dropped experienced in the subsequent bear market of 2013-2015. The recent stretch has seen a depreciation of 84% with the current price of $3,400 registering a decline of 82%.
The Crypto community cannot predict when the current bear market will end. However many anticipate that the Bitcoin bottom is soon going to be reached with some speculating that the factors that will make this possible will be the presumed market stability, seeing as the market did not responded too erratically to the news that the VanEck Bitcoin ETF proposal had been pulled, and possibly the upcoming deflationary halving event.
The Upcoming Halving Event
The halving event takes place once in every four years. During this event the rewards due, per mining block, are reduced by half therefore leading to the reduction of new Bitcoin creation. This reduction of rewards by half led to the event being known as ‘halving’.
This event has been known to be a catalyst for a bullish period because of the laws of demand and supply. The slow production of Bitcoins through mining is outweighed by the demand therefore leading to a situation where the existing Bitcoins have a higher valuation, conditions of the market notwithstanding.
As a result, the price of Bitcoin tends to go lower a few months to the halving event and rise substantially after. During the first halving event Bitcoin’s price dropped 378 days before the event took place and then rose by 510%. During the second halving event, Bitcoin bottomed 539 days to the event then went on to increase by 309%. The upcoming halving event is 497 days away, expected to take place in 2020, therefore it is safe to assume a bottom will be reached very soon.
The Next Expected Bottom
Although there haven’t been many halving events, the two that have taken place allows for the average bottom date to be arrived at. Going by this, the estimated bottom date is expected to be 458 days prior to the actual halving event.