Quick Take
On August 5, Bitcoin recorded its worst performance this year, dropping roughly 16% from its peak to its trough.
But the day isn't even over yet and it's already recovered roughly 10% from the lows. Historically, Bitcoin volatility has led to similar sharp declines. When analyzing Bitcoin's returns after its worst daily performances this year, we see some surprising recoveries.
On March 12, 2020, Bitcoin recorded a sharp drop of 39.63%, but has since recovered remarkably, recovering 103.09% in three months and 108.45% in six months. On April 11, 2013, Bitcoin also saw a large drop, dropping 22.84%, but again demonstrated resilience by recovering 42.10% within a month.
However, not all recoveries have been strong: for example, after a 20.05% drop on June 11, 2011, Bitcoin’s six-month return plummeted 79.60%.
Data shows that Bitcoin often recovers after big drops, but the extent and speed of the recovery can vary widely.
The September 14, 2017 sell-off of 15.37% was followed by an impressive three-month return of 409.89% and a six-month return of 183.71%. In contrast, the February 5, 2018 sell-off produced a more modest six-month return of just 2.04%.
Date Price (USD) % Intraday Decline 1 Week Return (%) 1 Month Return (%) 3 Month Return (%) 6 Month Return (%) 2010-07-22 $0.06 -23.41% 23.69% 18.69% 76.96% 459.46% 2011-06-11 $14.65 -20.05% 15.19% -3.00% -65.49% -79.60% 2012-08-19 $7.92 -11.58% 33.28% 55.23% 48.84% 240.89% 2013-04-11 $81.20 -22.84% 34.30% 42.10% 5.94% 53.14% 2014-03-27 $472.14 -16.00% -4.79% -2.35% 18.71% -6.93% 2015-01-14 $172.21 -23.65% 32.03% 37.51% 27.40% 70.04% 2016-01-15 $3 62.43 -1 0.71% 5.76% 12.18% 17.47% 80.78% 2017-09-14 $3240.90 -15.37% 11.63% 79.16% 409.89% 183.71% 2018-02-05 $6891.93 -21.04% 28.89% 44.60% 39.97% 2.04% 2019-06-27 $11151.37 -10.36% 0.55% -15.19% -23.89% -34.45% 2020-03-12 $4860.35 -39.63% 27.42% 40.99% 1 03.09% 108.45% 2021-05-19 $37151.95 -13.04% 5.69% -3.87% 20.30% 71.57% 2022-05-19 $22499.38 -15.16% -8.25% -10.23% -3.26% -23.89% 2023-08-17 $26641.15 -7.36% -1.86% -0.30% 42.50% 86.77%
Source: Glassnode
The article “How Will Bitcoin Perform Historically After Its Worst Day of the Year?” appeared first on CryptoSlate.
