Bitcoin News: The $ 10,000 drop in one day is not the worst Bitcoin correction in history, proportionally, but the most serious in terms of the US dollar.
Bitcoin and the rest of the market experienced a spectacular decline yesterday. We saw double digit drops in all charts. In the BTC case, it came as a continuation of the larger retreat that started after the all-time high of $ 65,000 in April. But how did this fix compare to the others?
Bitcoin entered the last bull cycle in late 2020, began to gain rapidly in value, broke its $ 20,000 ATH and entered the uncharted territory in January 2021.
At this point, it turned out that Tesla bought $ 1.5 billion worth of BTC. This was a purchase that followed the introduction of other giants such as MicroStrategy, MassMutual, One Asset River Management, and more.
However, Tesla’s acquisition was considered the most important turning point due to the popularity of the brand and CEO Elon Musk. Soon after, the electric vehicle manufacturer said it would enable BTC payments for its products, which further accelerated the price increase. We approached $ 65,000 in mid-April.
Last week, the electric vehicle company disabled BTC payments and the price of the cryptocurrency started to drop sharply.
China also reiterated its negative stance on digital assets, and the situation has worsened. While BTC has lost nearly $ 25,000 since its mid-April peak, the worst had yet to come.
We saw the worst yesterday. While it is still debated whether it is due to too much leveraged positions or something else, the truth is that Bitcoin fell by $ 10,000 in just a few minutes to a three-month low of $ 30,000.
Although BTC has recouped all its losses and traded above $ 40,000 as of now, it is still too early to say if the decline is over yet. However, the data currently show that Bitcoin has dropped more than 50% from its mid-April peak to yesterday’s low.
While it may sound violent, BTC is no stranger to similar and even worse corrections. According to CoinMarketCap data provided by Dan Tapiero, the retracement in mid-2021 is not even in the top five in percentage terms.
In April 2013, the cryptocurrency fell more than 80% in two days. The asset dropped 55% in one day on Black Thursday last year.
Yet this recent drop ultimately broke a record. It was the most serious correction of BTC in terms of US dollars.