As at all times within the crypto market, worry and greed rule the minds of its contributors. Thus, in the midst of varied discussions on the way forward for Bitcoin (BTC), a concept has emerged that implies that the asset might fall arduous within the quick time period because the markets face a “black swan.”
In response to the idea, since Bitcoin is a extremely liquid asset, it’ll initially dump sharply as traders liquidate their positions to cowl losses on different leveraged bets. This will likely be a troublesome time for bulls and holders of lengthy leveraged positions, however it’ll additionally result in a big V-shaped restoration that can push the cryptocurrency to new all-time highs.
In response to this concept, Samson Mow, a widely known proponent of the most important cryptocurrency, supplied a unique perspective. Thus, the well-known crypto pioneer famous that previous tendencies present that Bitcoin is resilient even throughout extreme market downturns.
I believe we’ve seen that sub 50k a ton of capital is prepared to deploy. The final market crash noticed Bitcoin get better in a short time the second US markets opened. So I might anticipate the identical in one other crash which implies it’s unlikely Bitcoin can go that low in a Black Friday crash.
— Samson Mow (@Excellion) August 18, 2024
He identified that over the last main market crash, Bitcoin confirmed a robust restoration as quickly because the U.S. markets reopened. This provides cause to imagine that it’s unlikely to fall beneath $50,000 throughout one other potential market crash, says Mow.
As a reminder, the newest spherical of crypto market crash occurred on the finish of the primary week of August, when in a single single day the value of Bitcoin fell by greater than 15% and reached $49,000 — lows not seen for the reason that starting of the 12 months. The crash was brought on by recession fears as many market contributors started to liquidate their positions in crypto as essentially the most dangerous asset.