Major cryptocurrencies Bitcoin, Ethereum and Solana plummeted 10% or more in the past week, with some falling to over 20% off their all time highs.
The cryptocurrencies moved in tandem with the equities markets, as global investors appeared to brace for the worst, as fear of a new COVID variant made rounds in various media channels.
But the losses in the volatile crypto market far exceeded the more modest losses in the equities markets, which only lost a few percentage points from their recent highs.
- Bitcoin (BTC) fell to $54,780.20 as of Sunday, Nov. 28, from an all time high of nearly $69,000.
- Ethereum (ETH) fell to $4,111.35 as of Sunday, Nov. 28, from an all time high of nearly $4,900.
- Solana (SOL) fell to $189.48 as of Sunday, Nov. 28, from an all time high of $260.
So does the crypto drawdown signal the beginning of a bear market for the major coins? Or is it a buying opportunity?
“A lot of investors appear to be using this drawdown as a buying opportunity,” said Jimmy Atkinson, co-founder of The Alternative Investment Database. “The existence of a new Bitcoin ETF, plus increased institutional adoption of crypto, means that a future technical bear market for the major coins may be less severe than with prior bear markets in crypto.”
Indeed, many retail Bitcoin investors believe that a long term price target for BTC might be $250k, $500k, or even $1M. While the recent volatility will undoubtedly scare off a few weaker hands, the “true believers” are unlikely to change their bullish long-run stance.