Bitcoin plunged below $19,000 on 18 June amid a huge sell-off across the crypto market. BTC, once known as a strong contender for the title of ‘digital safe haven asset’, has now crashed by more than 70% in the past 7 months.
The Bitcoin crash is nothing new. Investors witnessed similar corrections throughout the last decade. Most recently in 2018 and 2020. However, BTC’s correlation with S&P 500 and Nasdaq indicates that the crypto asset is also vulnerable to macroeconomic events.
BTC reached an all-time high of approximately $69,000 in November 2021, since then, the digital asset has been in a consistent decline mainly due to a dip in retail interest. But the Bitcoin story is not over yet. The main difference between the previous BTC crashes and the recent bearish cycle is that the adoption of Bitcoin has increased rapidly in the past few years. According to a report from Crypto.com, there are more than 300 million cryptocurrency users around the world.
Due to rising adoption and growing institutional interest, leading voices across the crypto market believe that the world’s most dominant digital asset is currently trading at a discounted price.
70% Discount
Johnny McCamley, Founder and CEO of CryptoClear, said that BTC’s current price level provides an opportunity of a lifetime.
“Bitcoin is cheap right now (70% discount) as the all-time high was $69,000 only last November. We are still early in the Bitcoin lifecycle and this is a buying opportunity of a lifetime right now,” McCamley said.
“Taking into consideration the global economic situation, the current price can be considered part of the maturing process of the crypto industry, and a considerable opportunity to join the trend especially if you are looking at the long term,” Martin Noam Slutzky, co-founder of InvestingNFT and a founder of Alef & Sky, commented.
Institutional Interest
Since the crash of 2018, many institutional investors entered the Bitcoin market and started accumulating BTC in large amounts. From Tesla to MicroStrategy, most of the public listed companies purchased BTC at different price levels. Even countries like El Salvador bought the dip on different occasions. Rising institutional interest has…
