Bitcoin has died more than 8 times but been keen to “rise again” each time
When Bitcoin’s price dropped below $4,000 at the beginning of this week to a low of $3,657.60 Sunday, it broke "some key levels and serious questions" were raised about whether it could even go further down. Some analysts also went further to predict that the price would fall further below $3000.
The fall below 4,000 was unexpected because many had hoped that maybe $6000 would be the bottom. That never came to be.
Good enough because the searches for Bitcoin and Bitcoin price keywords on the Google Trends are now on 8-month high trend, rising. In fact, the keyword "Bitcoin" has now been searched almost 100% more than it was two weeks ago according to the latest check on Google Trends. However, Google searches for "Bitcoin" decreased 93 percent from peak hype to late October of this year, indicating very low interest.
After the unexpected fall below the $4,000 level, there was an increase in the number of people interested to known whether "Bitcoin is dead." The term was also a common search phrase on Google Trends, in addition to the terms "Bitcoin" and "Bitcoin Price" etc. Well, the current crash may be described as a "death" but there have been more Bitcoin deaths than you would probably have thought: what's clear is that Bitcoin has been able to "come back to life" after each death.
There is a guy who has even compiled all the obituaries of Bitcoin so you can hop to this article immediately if you want to see all, but in total according to the article, this thing has died 326 times each time coming along with an obituary written from some source. Basically, it is a tally of how many times the cryptocurrency was termed as not viable or a bubble or a scam or some other worse thing by different people. Well, November 26, 2018, goes on record as another death date for Bitcoin while the earliest death year was December 15, 2010.
Well, Bitcoin may not have necessarily died 326 times, but it has surely crashed 8 times, majorly. The first major crash saw Bitcoin go from $39 in June 2011 to a low of $2 in November of the same year, representing a 93 percent "death". Between April 10 and 12, 2013, there was yet a second death with Bitcoin dropping from $259 to $45. Bitcoin also tumbled a dreaded 85 percent from an all-time high of $1,151 to $177 over a 411-day period that started on November 30, 2013, and ended on January 14, 2015.
This happened due to the hacking of Mt. Gox, which itself was followed by a spike in transaction volume which achieved a record 102,000 transactions on November 29, 2013. The volume went as low as 41,476 transactions by December 31, 2013, but later on, shot to a six-figure after a 411-day crypto winter.
The transaction volume also tumbled in yet another death reaching lows of 4,700 transactions in the tail end of November, which was a 60 percent decrease. The volume waited until May of 2012 when it went above 12,000 again.
After the transaction volume shot to nearly 450,000 transactions on December 12, 2017, when the price was at its’ peak at $20,000, the volume tumbled again by near half as a result of Christmas Eve sell-off and then went back to the 450,000 figure on January 3, 2018. It then dropped by 68 percent to lows of 130,000 in the Spring of 2018. Since this fall, the transactions have actually come back up to 250,000–300,000 daily traffic.
What is certain is that each of these major crashes or "deaths" has been followed by a period of notable rise and each rise has generally been higher than the previous one, with the highest boom experienced in December 2017. A boom is also almost always followed by a dormancy period indicating low interest and that's what has been happening for the better part of this year. Bitcoin's spike also coincides with a boom in other cryptocurrencies or altcoins.
So anyone should tell that the 2018’s market climate is a pattern repeating itself, though sort of an "extended winter" but based on history, another boom is still yet possible, soon.