Ethereum and Bitcoin have faced significant drawdowns, with Ethereum experiencing a 60% or greater drop seven times since 2018, according to Tom Lee, Chairman of BitMine Immersion Technologies. Lee attributes the recent 10-day crypto market decline, where Ethereum fell 40% and Bitcoin 30%, to market cycle patterns and external shocks, including a leveraged options blowup tied to Asian funding.
Despite the downturn, some analysts see potential for a rebound, citing historical patterns where significant drops preceded rallies. Ethereum's recent taker buy volume spike, surpassing $272 million, suggests aggressive buying, which could signal a reversal. However, opinions remain divided, with some viewing the market as structurally bearish and others seeing it as an opportunity for growth. The MVRV Z-Score indicates a potential reversal, but psychological barriers remain a challenge for investors.
Ethereum and Bitcoin Experience 60% Drawdowns, Analysts Debate Rebound
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