What next after the 20% drop?
After BTC briefly reached a new all-time high last week, the market reversed over the weekend and lost ~20%. Several elements are credited for the drop: euphoria in the futures markets, high leverage levels, BTC hash rate drop, fake news, etc.
While nobody likes to experience these selloffs, they are part of the normal crypto market dynamics. Despite being a very volatile asset class, crypto is flush with leverage, and consequently, we occasionally experience higher volatility. It is entertaining to observe that nobody has any problem with upside volatility though.
So, what happens next? In the chart below, we compare the March 2020 drop with the current one. We expect the market to move sideways for some time, but eventually, the prices will continue to appreciate (click on any image below for a larger version).