Bitcoin (BTC) fell to new yearly lows on Nov. 9 as crypto traders processed the news that Binance had backed out of the deal to acquire the embattled FTX exchange. “As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of FTX,” Binance stated on its official Twitter page.
The price of Bitcoin hit lows of $15,769 on crypto exchange Coinbase, setting new yearly lows in the process. As of press time, the BTC price was trading at $16,640, down 5% over the past 24 hours. Bitcoin is currently down 75.9% from its all-time high of $69,000 reached in November 2021.
Next lows might be $13,800 or even $10,350
Veteran trader Peter Brandt, recalling the history of Bitcoin’s declines greater than 50% from its all-time highs, noted that the current decline in Bitcoin as of today’s low is only the fifth worst bear market in history. Notable declines from Bitcoin highs include that of the 2018 bear market, which ran from December 2017 to December 2018, wherein Bitcoin saw a drop from highs of $19,765 to lows of $3,148.
It should be noted that the current decline in Bitcoin as of today’s low is only the fifth worst bear market in history. An 80% decline would be 13,800 and an 85% decline would be 10,350. pic.twitter.com/84w8r9KeBf
— Peter Brandt (@PeterLBrandt) November 9, 2022
Then, from November 2013 to December 2015, during a bear market that lasted over two years, Bitcoin had a nearly 86% decline from highs of $1,177 to lows of $164.The 2011 bear market, which was the shortest but had the greatest impact, continues to be the largest loss of all time. It lasted for approximately five months. Bitcoin fell 93.8% from a high of $32 to a low of $2.
According to Peter Brandt, if Bitcoin should take on the magnitude of the drop seen in the prior bear markets, an 80% decline would imply a $13,800 low and an 85% decline would imply $10,350.
As reported by U.Today, JPMorgan predicts that Bitcoin might collapse to $13,000, while Bloomberg analysts and Fundstrat’s Mark Newton believe that Bitcoin could slip below the $10,000 level.