According to TechFlow, veteran trader Peter Brandt pointed out that the downward trend of Bitcoin since the halving in April 2024 has begun to resemble the market trend before the bull market in 2016. Brandt compared the depth of market adjustments after the two halvings and found that they were very similar. The price of Bitcoin was $650 when it halved on July 9, 2016, and then fell 27% to $474 within a month, and then soared to a cycle high of $20,000 in December 2017.

Similarly, Bitcoin recently fell below $50,000, down 26% from its post-halving price of $64,962. However, some analysts warn that Bitcoin could fall further.

According to Coingecko data, the price of Bitcoin plummeted to $49,221 on August 5, but had recovered to above $56,000 in early Asian trading on August 6.

Chirp founder and CEO Tim Kravchunovsky said that crypto assets may recover faster than other risk assets, similar to what happened in 2020. He believes that this large-scale sell-off is not a cryptocurrency-specific problem, but is driven by macroeconomic factors. Cryptocurrencies may decouple from traditional stocks in the coming days, showing a faster and more significant recovery.