Analysts in traditional and crypto stocks have noticed similarities between what occurred in March 2020 and the market changes so far this month.
Analysts in both the crypto and traditional market have noticed certain striking similarities between the current downturn and the one triggered by a pandemic outbreak that occurred in March.
The main issue is whether this is the beginning of a wider downwards or if there’s going to be a significant rebound in 2020, which caused a long bull market in the stock and crypto markets.
Podcaster and the author of the book The Pomp Letter, Anthony “Pomp” Pompliano, is on the permabull side of the ledger. He tweeted on Wednesday that, since January 1, 2020, at the time that one Bitcoin cost around $8.545, “Bitcoin is up 340%.”
Some of the people who believe in an improvement are the investment company Real Vision’s Chief Executive Officer Raoul Pal, who believes Bitcoin (BTC) markets are drawing a picture that shares similarities that were seen in the crash of March.
In the episode he hosted on Friday on Raoul Pal Adventures in Crypto, Pal explained that with the downtrend movement this week, Bitcoin might have “shot straight down” to the bottom of the wedge pattern and is currently in a range that will eventually lead to a further increase in price.
In March 2012, investors sold off many investments, including Bitcoin, due to fears that the price could be affected by the COVID-19 virus and the global lockdowns. That day, Bitcoin fell 45% from $7,935 down to $5,142.
The current slump in the traditional markets has led to losses in the range of $7.6 trillion worth of market value from the high-tech Nasdaq in non-inflation-adjusted terms, which is more than the dot-com bubble and the sell-offs in March 2020.