What’s Happening with Bitcoin?

What’s Happening with Bitcoin?

by Ras Vasilisin
27. January 2022
What’s Happening with Bitcoin?


  • Bitcoin’s correlation to the Nasdaq reaches an all-time high 
  • Capitulation seems to be slowing for now.
  • Still a lack of large buyers
  • Bitcoin difficulty hit a new all-time high
  • Bitcoin went down more than 50% in 2018, 2020, and 2021. 

This week Bitcoin’s correlation to the Nasdaq reached an all-time high. With no substantial flows to Bitcoin, it is trading in tandem with risk-off behavior from equities with a high beta. 

Capitulation seems to be slowing, for now, meaning a decreasing amount of losses being realized. This is shown by net realized profit/loss.

Still a lack of large buyers, or “whales” on-chain. They are usually referred to as entities with over 1,000 BTC and then filter out exchanges.

In short, everybody should just calm the hell down. 

Bitcoin had numerous 50% drawdowns in history. 

It also went down more than 50% in 2018, 2020, and 2021. 

What matters is the long-term horizon. Just take a look at the returns in the last 10 years. 


Bottom line

No one has ever lost money with Bitcoin if they held it for more than 4 years. The medium time horizon for Bitcoin is 10 years, but the ideal period is even longer. 

As Warren Buffett said, 

“Our favorite holding period is forever.”

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