The last two weeks have been very eventful as the crypto markets plunged over $1.3 trillion, which was an unexpected move to many market participants.
This crash was anything but unexpected to those who held a skeptical perspective on the current state of the markets. In my opinion, we’ve been in a mania bubble for the last several months, which is evident in the rise of many cryptocurrency memes, which provide no value, and are worthless.
It’s clear that most people in crypto right now are desperate to make quick gains, rather than do research, and invest in long-term projects that will succeed. This reckless gamble addiction, often seen in young traders, is a common occurrence in all market bubbles and is a concerning red flag to many level-headed and realistic investors.
The Bitcoin Bull Run is Over? 📊
In my opinion, that was the blow-off top that we’ve been expecting.
The recent market crash was unlike anything we’ve seen in years. We dropped -$29,500 in 2 weeks, which was the largest price correction in Bitcoin’s entire history.
What especially stood out to me the most was the reaction we saw immediately after. Usually, after normal 20-30% drops during bull markets, we see lots of uncertainty. With this drop, it did the opposite. We saw a huge increase in retail investors buying more bags, and prepping for a continued bull market.
This only happened one other time, which was in 2017. The one time everyone was “buying the dip”, was the time we plunged -85% in 12 months and entered a long and bloody bear market.
On April 18th, 2021, at the peak of the bubble, I tweeted a warning to investors about a potential bear market. I shared a visual chart that showed Bitcoin’s bull run timeframe aligning exactly with the previous bull run.
This pattern, along with CoinBase’s NASDAQ listing, Elon Musk’s tweets, China and Iran cracking down on Bitcoin mining, and Tether’s settlement and recent audits, are all reasons for this price correction.