According to Erik Voorhees, the CEO of popular cryptocurrency trading platform ShapeShift, the bear market of Bitcoin is crucial for building market foundation and infrastructure.
"Bear markets are for builders. The calm, the quiet, the disillusionment. While the fickle and fair-weather peer around with nervous insecurity, the builders become the market's foundation, preparing the mortar and stone of tomorrow's towers."
Why Corrections Were Historically Important For Crypto
Over the past eight years, in 2010, 2012, 2014, 2016, and 2018, Bitcoin recorded five major corrections, with the latest 67 percent drop this year being the smallest correction in terms of percentage loss since 2010.
Last year, throughout November and December, the cryptocurrency market saw unprecedented levels of speculation and interest, as national television networks and mainstream media outlets continued to fuel hype around the emerging asset class.
In some regions like South Korea, the price of Bitcoin surpassed the $20,000 mark, even reaching $24,000 at one point as a result of the so-called "Kimchi Premium."
Investors that have been involved in the market since the early days of Bitcoin were understandably unfazed by the correction, given the four previous 80 percent corrections the dominant cryptocurrency experienced.