The crypto market has seen numerous dips and bear markets throughout its lifetime. Some down terms were mild, others were more intense, however, crypto prices managed to recover from even the most hopeless looking scenarios. Today, we’ll discover the best recoveries of the crypto market to date, which will showcase how investor sentiment can change from one day to another from absolute bearish to positive bullish.
The prices of digital assets, cryptocurrencies included, tend to fluctuate more than the value of other investment forms, such as bonds, treasury bills, or simple fiat currency holdings. The ups and downs are healthy parts of every asset’s market cycle. Down terms create opportunities to get in at better rates, while uptrends provide optimal chances of cashing out. However, the impossible thing to do is predict exactly when such price changes will happen, and so the age-old investor anecdote argues “Time in the market beats timing the market”.
Nonetheless, why are prices dropping? There could be many reasons behind downtrends, and one can only guess what were the true influencing factors. In 2022, the drop could have been caused by historically hiking inflation and base interest rates, the Russian-Ukrainian war’s effect on energy prices and supply, as well as the aftermath of the pandemic that has recently shaken the global economy.
Despite the negative sentiment, when observing price charts, anyone can quickly spot that no down term is unprecedented. We’ve seen bear markets, flash-crashes, and everything in between, numerous times throughout the past decades, only to experience great comebacks that followed. With that, let’s take a look at the best rebounds of the crypto market.
2018.03.05. Overall crypto market cap: $465B
2018.04.10. Overall crypto market cap: $257B
2018.05.06. Overall crypto market cap: $464B
2018 was one of the first true bear markets the crypto world experienced. It followed right after an unprecedented bull market that ran a riot in 2017. Despite the extreme fear, and an almost 40% drop in under a month, the market managed to rebound within 30 days to the level before the significant dip.
2021.02.22. Overall crypto market cap: $1.7T
2021.02.28. Overall crypto market cap: $1.4T
2021.03.12. Overall crypto market cap: $1.7T
2021.04.017. Overall crypto market cap: $2.2T
2021.04.25. Overall crypto market cap: $1.84T
2021.05.09. Overall crypto market cap: $2.4T
2021.05.13. Overall crypto market cap: $2.4T
2021.07.22. Overall crypto market cap: $1.23T
2021.11.13. Overall crypto market cap: $2.8T
The greatest comeback of the crypto market to date happened in 2021. The prices began to drop drastically in May, and they only bottomed out two months later by the end of July. However, what followed shocked the investing world, as prices have not only rebounded, but also recorded all-time high values by the day just a few months after the bottom in October and November 2021.
The above examples indicate that even the most negative scenarios have the potential to turn around in a few days, especially when it comes to the crypto market. While historic performance is not a guarantee for future profits, analyzing the greatest comebacks of the market can teach us a lot, especially in times when things seem to be going south.
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