Bitcoin Price Crash: Can History Repeat Itself?
Bitcoin’s price has taken a significant hit, plunging to $102,000 on Friday following US President Donald Trump’s announcement of a 100% tariff on China. However, economist Timothy Peterson suggests that the cryptocurrency may recover up to 21% over the coming seven days if October’s historical trends hold. Peterson notes that drops of more than 5% in October are exceedingly rare, having occurred only four times in the past 10 years, in 2017, 2018, 2019, and 2021.
In the week following each drop, Bitcoin (BTC) rebounded by 16% in 2017, 4% in 2018, and 21% in 2019. The only exception was 2021, when the crypto asset fell a further 3%. October is often dubbed “Uptober” for its historically strong returns, with an average return of 20.14% since 2013, according to data from CoinGlass. This makes October Bitcoin’s second-best performing month on average, trailing only November, which has had an average gain of 46.02%.
Peterson’s comments came after Bitcoin reached a new all-time high of $125,100 on Monday, according to CoinMarketCap. At the time of publication, Bitcoin has already slightly recovered to $112,468. If history repeats and Bitcoin mirrors its strongest October rebound — the 21% surge in 2019 — a similar move from Friday’s low of $102,000 would place the cryptocurrency just below its latest all-time high, around $124,000, within a week.
Bitcoin Advocates Remain Confident
Several other Bitcoin advocates remain confident that the uptrend will continue. Jan3 founder Samson Mow said, “There are still 21 days left in Uptober.” MN Trading Capital founder Michael van de Poppe said, “This is the bottom of the current cycle.” Van de Poppe also noted that “the biggest liquidation crash in history” was similar to the COVID-19 pandemic, which marked the bottom of the previous cycle.
Some analysts took a longer-term view, with The Bitcoin Libertarian saying, “In a few years, Bitcoin will crash from $1M to $0.8M in a few hours, and we’ll all be talking about a new record high amount of liquidations.” He added, “Let history repeat.” Bitcoin is trading at $111,700 at the time of publication, according to CoinMarketCap.
Conclusion
While the current price crash may seem ominous, history suggests that Bitcoin may recover in the coming weeks. With October’s historical trends and the confidence of Bitcoin advocates, it’s possible that the cryptocurrency may skyrocket to $124,000. However, it’s essential to note that the cryptocurrency market is highly volatile, and prices can fluctuate rapidly. For more information, visit the original source link: https://cointelegraph.com/news/bitcoin-price-crash-trump-tariffs-history-repeats-economist?utm_source=rss_feed&utm_medium=rss_tag_bitcoin&utm_campaign=rss_partner_inbound
