Bitcoin’s Dramatic Plunge: Is It the End or Just a Dramatic Pause?

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Ah, Bitcoin! The capricious darling of the financial world, which, in a mere week, has decided to shed over twenty thousand dollars like a snake shedding its skin. One might wonder if it has taken a vacation to the depths of despair, reaching levels not seen since the balmy days of mid-November 2024.

Such a dramatic descent naturally invites the age-old question: Is this merely a ‘normal’ dip, or has the bull market been unceremoniously cut short, like a bad play at the local theater?

The End of the Bull Market? Not So Fast!

Who else but the ever-optimistic Peter Schiff could lead the charge in proclaiming the demise of the bull market? This man, who seems to relish every opportunity to deride Bitcoin, even when it’s basking in the glow of success, has now taken to bashing it with renewed vigor. One can only imagine his glee as he watches the price tumble—like a child watching a piñata burst open.

In his latest tirade, he urged the masses to abandon the ‘bear market rally’ of Bitcoin and instead embrace the ‘bull market rally’ of gold, which, on that fateful Friday, was heading south faster than a bird in a storm. Bitcoin, after a series of unfortunate events, managed to bounce back to a respectable $84,000-$86,000, while gold, poor thing, fell below $2,850. A classic case of ‘one man’s trash is another man’s treasure,’ wouldn’t you say?

Bitcoin rallied back from below $79K to above $84K. Meanwhile, gold corrected from above $2,950 to below $2,850. This is a great opportunity to use Bitpay to sell the bear market rally in Bitcoin and buy the bull market dip in gold.

— Peter Schiff (@PeterSchiff) February 28, 2025

Despite his perennial pessimism, Schiff’s words do carry a hint of truth. The Bitcoin network has seen a decline in activity, hash rate, and mining difficulty, as if it were a once-bustling café now reduced to a ghost town. Add to this the ETF outflows and the circus that is Trump’s policies, and one might wonder if the curtain has indeed fallen on this cycle’s bull run.

Even February, that historically bullish month, has betrayed Bitcoin. Instead of the usual gains, it has delivered a performance that would make even the most seasoned investor weep. The worst month for BTC in over a decade? Bravo, February! You’ve outdone yourself!

The Not-So-Fast Narrative

Bitcoin, the drama queen of the cryptocurrency world, is notorious for its wild price swings. It has a long history of dramatic descents following explosive rallies, and many argue that this latest dip is merely a blip on the radar. After all, it dipped toward $90,000 a couple of times after peaking above $100,000, which is hardly a cause for alarm, right?

Even the recent drop to $78,000, a staggering 28% fall from its all-time high, pales in comparison to previous calamities. A mere scratch on the surface, if you will.

List of Bitcoin corrections in the run-up to $20k in 2017:
-41%
-38%
-29%
-34%
-41%
-40%
-27%

List of Bitcoin corrections in the run-up to $69k in 2021:
-21%
-17%
-31%
-26%
-55% (!!)
-25%

— matthew sigel, recovering CFA (@matthew_sigel) February 28, 2025

Consequently, the wise sages of the Bitcoin realm, like Adam Back, have declared such dips to be ‘normal’ in bull markets, advising the anxious to ‘zoom out.’ Crypto Rover, with his legion of 1.1 million followers, assures them that surviving this dip is the key to untold riches. One analyst even posited a bullish target of nearly $300,000, which, if nothing else, is a delightful exercise in optimism.

My #Bitcoin bull market price target is $280,000!

— CryptoGoos (@crypto_goos) February 25, 2025

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2025-03-01 16:57