CoinGecko: Market retracement far lower than in 2020, no significant correction after FTX collapse

Despite the recent sharp decline in the cryptocurrency market, a research report by CoinGecko points out that this is completely incomparable to the crash during the pandemic in 2020.

CoinGecko: No Major Corrections in Two Years

CoinGecko report examined the percentage change in total crypto market capitalization on a daily basis from January 1, 2014, to August 6, 2024, only recording market value declines of more than -10% in a single day.

If using single-day market value -10% as a standard, then the cryptocurrency market has not actually experienced any major corrections since the FTX crash.

The report shows that the largest single-day market value decline this year was -8.4% on March 20, much lower than the -39.6% during the COVID-19 pandemic, despite BTC's recent drop of -29% in two weeks. The market has shown resilience this year without any major corrections.

Nearly 40% Crash During the Pandemic

The highest single-day decline in the past decade was on March 12, 2020, during the pandemic. The cryptocurrency market value plummeted from $223.74 billion to $135.14 billion, with a decline of -39.6%; BTC dropped by -35.2% that day, and ETH experienced its second largest drop in history of -43.1%.

'March 12th' - The Cryptocurrency Black Thursday, setting those records

The second highest decline was on September 14, 2017, with a -22.3% retracement in market value from $136.55 billion to $106.14 billion. However, the total market value and BTC quickly rebounded the next day, highlighting the high volatility of cryptocurrencies at that time.

How Long Will the Retracement Last?

CoinGecko pointed out that since the FTX crash in November 2022, the total crypto market value has not experienced a single-day decline of more than -10%. Over the past decade, the longest cryptocurrency market correction lasted for two consecutive days, and it has only occurred three times.

• January 16, 2018 (-11.8%) to 17th (-13.4%)

• February 5, 2018 (-10.3%) to 6th (-19.0%)

• November 9, 2022 (-10.1%) to 10th (-13.5%)

From 2014 to the present, there have been a total of 62 instances of single-day market value declines of more than -10%, with an average decline of -13%.

ETH Faces More Drops

Although there were no correction days for BTC and ETH in 2023, ETH experienced retracements on March 20 (-10.1%) and August 6 (-10%) this year.

ETH has experienced six instances of retracements lasting for two consecutive days or more:

• October 30, 2015 (-10.5%) to 31st (-12.9%)

• February 16, 2016 (-17.9%) to 17th (-14.3%)

• June 17, 2016 (-24.9%) to 18th (-27.3%)

• February 5, 2018 (-11.4%) to 6th (-18.0%)

• November 20, 2018 (-15.4%) to 21st (-12.6%)

• November 9, 2022 (-15.0%) to 10th (-17.9%)

Although the market generally feels pessimistic about retracements, crypto institutions like CryptoQuant continue to call for the possibility of a bull market return.

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