Lark Davis, crypto analyst, believes the cryptocurrency market has reached maturity and will soon experience price movements that have volatility ratios similar that of tech stocks.
The analyst says that the initial phase is volatile before the maturing market experiences steady growth and a gradual decrease in volatility.
Davis commented on the price movement across major cryptocurrency coins and said:
“The #crypto market is going to start behaving like tech stocks. Lots of early volatility, then we start to see basically up only (with turbulence) as the user bases continue to grow.”
He examines the scenario in which Bitcoin’s price corrections are not unlike those experienced by other leading tech stocks, such as Amazon Inc. (NASDAQ) AMZN).
“For reference Amazon hasn’t seen any drawdowns over 40% since 2011!!!! Crypto is maturing,” he tweeted.
Bitcoin has fallen by approximately 3% over the daily period. However, there are also losses per day for most digital assets. Solana and Binance Coin are among the most prominent losers in the top 10 cryptocurrencies according to market cap. There are also declines for Polkadot, Avalanche, and Dogecoin.
This situation is almost identical in the stock markets, where the Dow Jones and S&P 500 closed lower on Friday. Over the past few days, blue-chip stocks like Microsoft, Google, and Apple have all fallen amid wider concerns about Covid-19’s impact on economic recovery plans and other issues.
BTC’s largest price crashes
Bitcoin’s value has fallen by 33% in the last month after it reached $69,000 in November. BTC is trading at $45,000, as of this writing. This isn’t the worst dump for the most popular cryptocurrency. BTC’s price has dropped more than 80% in the past decade and by 50% on four occasions.
BTC crashed 99% and 84% respectively in 2011, the largest crashes. Both corrections were caused by the now defunct Mt.Gox Bitcoin Exchange. The latest dump is a 53% crash in May following China’s crackdown on crypto mining.