The 2021 Bitcoin correction compared to past sell-offs visualized

Bitcoins' latest price correction pulled back more than 50% from its all-time highs. Elon Musk’s tweet announcing Tesla’s suspension of bitcoin purchases accelerated the price drop.

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Bitcoin’s latest price correction

While bitcoin has been one of the world’s best-performing assets over the past 10 years, the cryptocurrency has had its fair share of volatility and price corrections.

Using data from CoinMarketCap, this graphic looks at bitcoin’s historical price corrections from all-time highs.

With bitcoin already down ~15% from its all-time high, Elon Musk’s tweet announcing Tesla would stop accepting bitcoin for purchases helped send the cryptocurrency down more than 50% from the top, dipping into the $30,000 price area.


Legendary billionaire investor Stanley Druckenmiller says it will be difficult to unseat bitcoin as the top store-of-value crypto asset

Prominent investor Stanley Druckenmiller says the dollar’s status as the global reserve currency is at risk, and suggests Bitcoin or other cryptos could fill the role.

Federal Reserve policies aimed at keeping markets and the economy afloat during the pandemic could end up threatening the long-term health of the U.S. dollar, investing magnate Stanley Druckenmiller told CNBC on Tuesday.

The chairman and CEO of Duquesne Family Office said the Fed’s insistence on holding interest rates down and buying trillions in bonds even though markets are thriving and the economy is booming is a long-term risk.

“I can’t find any period in history where monetary and fiscal policy were this out of step with the economic circumstances, not one,” Druckenmiller said during a”Squawk Box” interview.

One reason for that is there have been no other viable alternatives introduced.

Druckemiller has entertained the thought that a challenge could come from the crypto world. He said in the CNBC interview that the ultimate solution could be “some kind of ledger system invented by some kids from MIT or Stanford” though he conceded that “I don’t know what it will be.”

Stanley Druckenmiller told CNBC on Tuesday he sees bitcoin likely dominating all other cryptocurrencies as a store of value asset.

"It's going to be very hard to unseat bitcoin, as a store of value asset, because it has a 14 year old brand, it's been around long enough, and obviously, there's a finite supply," Druckenmiller said.

Cryptocurrency experts note that bitcoin's limited supply, as well as its durability, divisibility, and portability, make it a great store of value, even better than gold. Newer cryptocurrencies may be able to process transactions more efficiently and serve as better forms of payment, but Druckenmiller suggested that bitcoin is here to stay as an investment asset class.

Druckenmiller also said that while Ethereum currently has the lead in building smart contracts, it's not likely that the protocol will be the "ultimate winner" in becoming the crypto asset to dominate payment systems and other everyday contracts.

The head of Duquesne Family Office has disclosed that he owns "some" bitcoin, and has also said that owning bitcoin could be a good hedge against inflationary pressure.