Bitcoin Bull Run: How The Latest Dump Compares To 2017
Bitcoin’s September dump is just par for the course.
Covered
- Current Market Dump
- Similarities To Previous Bull Run
- Overall Market Outlook
Current Market Dump
Bitcoin 7-Day. Credit: CoinGecko.com
Bitcoin Day (September 7th) ended up being a bust. Bitcoin (ticker symbol: BTC) tumbled as low as $42,000 USD on the day El Salvador officially deployed the world’s first cryptocurrency as legal tender.
The drop came as a shock to many. After all, Bitcoin’s August gave reason for optimism. BTC rose as high as $50,482 in August, after finishing July at the 41k level, and June at 35k level. Not to mention, BTC almost broke through 53k on September 6th.
Unfortunately, it was yet another buy the rumour and sell the news event. Long liquidations amounted to around 3 billion on Tuesday.
Recommended: Algorand’s Role In El Salvador
In addition, September is a bad month for crypto. Same with the market at large. Some argue it’s the worst month for stocks.
The dump brought back the bears who pointed to the August price action as proof that we were in a dead cat bounce. However, what we are seeing is eerily similar to Bitcoin’s last bull run.
Similarities To Previous Bull Run
Bitcoin Chart: August to September. Credit: CoinGecko.com
After falling as low as $1,900 on July 15th, August 2017 saw the BTC price almost double. After starting off August at $2,700, BTC reached $4,863 on August 31st. Promptly, the world’s first cryptocurrency started dumping September 1st.
The dump reached its worst point September 13th after China announced it was banning crypto exchanges from operating in the country. OTC markets in China would remain operational. The news brought Bitcoin all the back down to 3,100, all but erasing the gain since August.
But it wasn’t so bad. By the end of the month Bitcoin shot back up $4,300.
Overall Market Outlook
Just walked into a McDonald's in San Salvador to see if I could pay for my breakfast with bitcoin, tbh fully expecting to be told no.
But low and behold, they printed a ticket with QR that took me to a webpage with Lightning invoice, and now I'm enjoying my desayuno traditional! pic.twitter.com/NYCkMNbv7U
— Aaron van Wirdum (@AaronvanW) September 7, 2021
Back in 2017, Bitcoin managed to survive the well timed China news. I think the same goes for El Salvador this time around. For whatever reason, the country’s roll out of Bitcoin was spun as a disaster. But, it doesn’t seem to be all that much of a catastrophe — unless you really hate McDonald’s breakfast.
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Text source: CryptosRus
