Bitcoin: A Revisitation of 2017's Market Volatility Amidst Current Challenges

By: Eliza Bennet

Bitcoin Navigates Rough Waters

Increasing market volatility has reportedly caused turbulence for Bitcoin in 2024, causing many investors to draw parallels between today's fluctuating market conditions and the rollercoaster ride witnessed in 2017. During the earlier stint, roughly 35 instances of daily price drops over 5% were experienced by Bitcoin investors, which began the year at about $790 and skyrocketed to an approximate $20,000 by December, revealing remarkable returns on investments despite the market's unpredictability.

Two significant factors are driving the 2024 Bitcoin volatility: the impressive 50% rise of Bitcoin this year, leading it to hit new all-time highs and encourage investors to participate in record profit-taking sell-offs, and the speculative leverage in Bitcoin markets reaching levels previously unseen. In particular, the total value of open Bitcoin futures contracts has soared to around $35 billion since mid-March, indicating heightened market activity.

Additionally, Bitcoin is struggling to recuperate above the $67,000 zone. Failure to resist downward momentum above the $64,500 level might prompt more bearish tendencies. Bitcoin might face a potential downward break if it continues to encounter obstacles near significant thresholds such as the $66,500 and $67,000 levels.