On June 15, the cryptocurrency market experienced a major market correction as the value of leading cryptocurrencies including Bitcoin, Ethereum, Ripple, Ethereum Classic and NEM sharply fell.
In total, the cryptocurrency market lost around $16 bln in market cap, moving back down to $95 bln after achieving a historic milestone earlier this week by surpassing the $100 bln mark.
Cryptocurrencies, in general, had a good run and maintained strong momentum over the past few months. Bitcoin, in particular, began to receive extensive media coverage from mainstream media outlets such as the Wall Street Journal and CNBC. Traditional newspapers including the WSJ continuously featured Bitcoin on their front page, comparing Bitcoin price to that of gold and reserve currencies such as the US dollar.
Only four days ago, Bitcoin price established a new all-time high of $3,018. Within a week, Bitcoin price surged from around $2,300 to $3,018.
However, as seen in the trend of Bitcoin price dating back to 2009, Bitcoin always had a minor market correction after establishing its new all-time high and rising to a new peak. However, Bitcoin price frequently stabilized at a region higher than the previous peak. For instance, when Bitcoin price plunged from $2,700 to $1,900 overnight amid a minor market correction, Bitcoin price established a new all-time high in the $3,000 region.
Andreas Antonopoulos, Bitcoin and security expert, told the community that it is important to consider the factors behind the surge of cryptocurrencies such as Bitcoin before evaluating the reasons behind their fall.
Some of you are wondering "why are cryptos crashing like crazy?"
Yet you didn't ask "why are cryptos climbing like crazy?"
That's why— Andreas (@aantonop)
He also emphasized that the cryptocurrency market and Bitcoin, in particular, have returned to more sustainable levels that will be beneficial for users, traders and investors in the long-run. Bitcoin and Ethereum amongst other cryptocurrencies and crypto assets were increasing at a rate that simply wasn’t proportional. The explosive growth of ICOs and mainstream media-produced hype led to a bubble in the cryptocurrency market and the market responded with a correction.
“We're returning to more sustainable price levels for all cryptos. In the process of reverting to the long term trendline, we will undershoot,” Antonopoulos added.
On May 28, Cointelegraph revealed that the cryptocurrency market fell drastically and suffered a major market correction as Bitcoin price fell from $2,700 to $1,926. After the initial plunge, Bitcoin recovered beyond the previous peak of $2,700 to $3,000.
This pattern will repeat all the way to Bitcoin $100,000 and beyond... pic.twitter.com/o9Wj4reBtv— Max Keiser (@maxkeiser)
Bitcoin price is a cycle which most investors dismiss. As seen throughout its history, Bitcoin price always recovered beyond its previous peak.