- “The fundamental narrative for bitcoin to the upside has not changed," the analyst wrote, noting recent news items such as WeWork’s acceptance of cryptocurrencies as a form of payment and Venmo facilitating crypto transactions on its platform show increasing adoption by businesses and mainstream users.
- “Hence, it might be good ... to turn this into a buying opportunity if [investors] are looking to increase exposure of digital assets in their portfolio,” wrote Stack Funds.
- BTC drawdowns have occurred every month since the start of this year but most ended with sharp recoveries, achieving newer highs in the following month.
- However, in a bear market drawdowns of more than 20% can last for several weeks or months.
According to Ecoinometrics, a cryptocurrency newsletter, the market dynamics are consistent with what might be expected in the year after a "halving" on the Bitcoin blockchain. A halving is when the blockchain automatically cuts the rate of issuance of new bitcoins by 50%, and it happens every four years. The last one was in May 2020.
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