By James Van Straten (All times ET unless indicated otherwise)
Two contradictory philosophies jump to mind when considering bitcoin’s (BTC) price action of late.
Do you “buy when there is blood in the streets”? Or perhaps “don’t catch a falling knife.”?
Which applies in today’s market, the day after the largest cryptocurrency posted its steepest three-day decline since the collapse of FTX in 2022? The drop left BTC 25% below January’s all-time high, despite the advent of President Donald Trump’s pro-crypto administration.
It’s no surprise the largest hack in crypto history has shaken investor sentiment. Add to that the memecoin frenzy, which pulled liquidity out of the broader market.
That said, in previous cycles so-called bull-market corrections have sent bitcoin tumbling as much as 35%. Given that BTC hasn’t had a meaningful pullback since the yen carry trade unwind last August, the current situation is almost normal.
CoinDesk…
