Key facts:
In 2018, the price of bitcoin reached just over USD 3,000, after trading at USD 20,000.
That same year, ether reached just over $100, having traded for $1,400.
The trend in the cryptocurrency markets continues to be down. And, if compared percentage-wise with previous bearish cycles, both bitcoin (BTC) and ether (ETH), the Ethereum cryptocurrency, are still far from reaching the minimum price they could reach.
At the time of this publication, each BTC is trading at $20,700 while ETH is trading for $1,100as can be seen in the CriptoNoticias Price Calculator.
In the last decade, bitcoin has had three bear markets (2013, 2018 and the current one) while ETH has had two (2018 and current, due to the fact that in 2013 it did not exist yet).
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The price of bitcoin, interestingly, in both 2013 and 2018 it had a drop from its historical maximum (ATH) to the minimum, close to 85%. In 2013 the ATH was USD 1,100, dropping to approximately USD 180. For 2018 BTC fell from USD 20,000 to USD 3,500.
In ETH, the drop was much more drastic. In 2018, ETH reached an all-time high price of over USD 1,400, and had a drop to almost USD 100, which represents a reduction of 94%.
Now, for BTC to emulate the past bear market (85% down), with an ATH above $69,000, the price should reach a figure close to USD 11,000. If that happened, bitcoin could still see a nearly 50% reduction from its current price.
In the case of ETH, with its most recent ATH over $4,850, would hit $300 on a 94% decline. With a price hovering around $1,100 today, ETH could see a drop of more than 60% if history were to repeat itself.
It should be noted that the 2018 bear market lasted a whole year, before lateralizing. Assuming the same thing happens this time, there would still be a few months of decline.
There is “extreme fear” in the bitcoin market
Currently, the price of cryptocurrencies continues to trend downwards, driven by different factors, such as the fall of the Terra USD, or inflation in the United States and possible increases in interest rates. All this ends up collaterally affecting cryptocurrencies and other equity assets.
As CriptoNoticias has exposed, Investors have entered “extreme fear” before the possibility that the price of the crypto asset will be less than USD 20,000.
If that were to happen, it would be the first time in history that the crypto asset reaches a price lower than that achieved in its previous cycle. Let us remember that these price cycles, at least until now, have been marked by Bitcoin halvings.