Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
Bitcoin recovered more swiftly from its bear cycles than Amazon did during the boom and bust of the dot com era, new data reveals.
Bitcoin (BTC) recovered more swiftly from its bear cycles than Amazon did during the boom and bust of the dot com era, data from crypto analytics firm Messari reveals.
Bitcoinâs 2019 breakout âextremely bullishâ by comparison
Fellow industry analytics firm Ceteris Paribus shared Messariâs findings in a tweet on July 17:
âThe latest $BTC cycle mirrors $AMZN during the dot-com bubble, but the recovery has been much more swift. Even with the recent sell off, bitcoin is 54% down from its high, vs. the 85% Amazon was trading at over a similar timeframe.â
Bitcoin and Amazon âbubblesâ comparison, 2015-2019. Courtesy of Messari via @ceterispar1bus
In a further tweet, Ceteris Paribus argues that while the two assets are markedly different, they have both allegedly âtraded on pure speculationâ at different points in their histories.Â
A comparison of the two reveals that Bitcoinâs breakout following crypto winter has been âextremely bullishâ as compared with Amazonâs own tumultuous past, with Ceteris Paribus noting that the coin is âmuch further ahead than most people imagined in Dec. 2018.âÂ
Industry perspectivesÂ
Interestingly, veteran trader Peter Brandt has this summer compared the likely fate of altcoins to the casualties of the dot com era, predicting that Bitcoinâs bull rally this will not extend to the cryptocurrency sector as a whole â unlike the historic rally of winter 2017. He remarked that:
âFollowing 2001-02 tech collapse, dotcoms with real value exploded. The âaltâ .coms went bankrupt.â
Meanwhile, Blockstream CEO Adam Back â the inventor of the hashcash proof-of-work (PoW) system later used in Bitcoinâs mining algorithm â has favorably compared the coin with earlier periods of innovation.
âBitcoin has come much further and much faster than people expected,â he said. âThere was a saying in the early dotcom era about âinternet time,â and [...] bitcoin time [...] seems to be moving even faster.â
This April, Cointelegraph published an expertâs take on the so-dubbed Bitcoin bubble and its historical cousins â both the 17th century Tulip mania and the dot-com bubble of 1999-2000.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.