Historical Trend Analysis of Bitcoin and Amazon

According to data from the cryptocurrency analysis firm Messari, comparing the historical trends of Bitcoin with Amazon, Bitcoin has recovered from the bear market cycle at a faster pace than Amazon did during the boom of the internet era.

The cryptocurrency analysis company Ceteris Paribus has conducted research on two assets, with Bitcoin standing out as "extremely bullish" in 2019, as indicated in their tweet on July 17th:

Bitcoin's bear market cycle last year closely resembled Amazon's trajectory during the dot-com bubble era, but Bitcoin has shown a quicker recovery. Despite recent market downturns, Bitcoin has only dropped 54% from its historical high, whereas Amazon saw an 85% drop within the same timeframe.

Furthermore, Ceteris Paribus believes that although these two assets are distinct, both fall under pure speculation, making the trend of this bubble predictable. They stated:

Compared to Amazon's turbulent bear market cycle in the past, Bitcoin's eruption after the crypto winter is "extremely promising," with the surge this year surpassing most people's expectations from December last year.

Market Perspectives

Prior to this, in an ABM article, opinions on the revival of altcoins varied. Seasoned trader Peter Brandt compared the future of altcoins to the internet era bubble, predicting that Bitcoin's bull market rebound will not expand across the entire cryptocurrency industry like in 2017. He commented:

After the tech stock crash in 2001-02, internet companies with real value exploded, while the "alt.coms" went bankrupt.

In response to the recent market downturn, Peter Brandt also pointed out on Twitter that the total market capitalization of cryptocurrencies will likely correct by about 80%, but it won't be Bitcoin that suffers, it will be altcoins.

While the parabola in BTC was subject to different renderings, the parabola in the total market cap chart was loud and clear. Total cap should correct 80%. Most of the damage of decline will occur to altcoins. pic.twitter.com/DssCIL4H0R

— Peter Brandt (@PeterLBrandt) July 16, 2019

On the other hand, traders with opposing views dismissed the notion that "altcoins are a bubble," stating that there may be instances of overpricing, but it does not mean a cryptocurrency bubble is occurring.

Further Reading

• Analysis indicates that BTC has the largest fluctuations at 9 AM
• Bitcoin sees the biggest drop of the week at 12%, with an overall market value evaporating by $30 billion

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