TL;DR
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The crypto market shed a cool $190B in value overnight, but 5, 10, 20, even 40 percent corrections like this are typical in the lead up to the Bitcoin halving.
Full Story
Ah the irony…
Yesterday, as the crypto market traded sideways and volatility tapered off, we wrote an article telling you to:
“This is the calm before the storm (enjoy it while you can)”…
Since we hit publish on that article — the crypto market shed a cool $190B in total market value, wiping out hundreds of millions of dollars worth of leverage along the way.
(Leverage = loans that folks take out in order to buy more crypto — as prices drop, buyers are forced to sell their crypto to pay back their loans).
Waking up to see all of the top 30 cryptocurrencies in the red is a pretty jarring site…but we’re still bullish!
Here’s why:
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Bitcoin dipped below $65k, a price we haven’t seen since…last week (not so scary when you put it like that).
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5-10% drops like this are normal in a bull run (in fact, in past bull markets, these dips were often closer to 20-40%).
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Dips, corrections, n’ crashes are a staple leading into Bitcoin halving events (so this is right on cue).
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Bitcoin has been in the green for the past 7 months straight — which is a new record! (And also means we’re about due for a red month).
The takeaway:
While gut-wrenching, this latest crypto market correction is right on cue (and light compared to previous bull cycles).
