With Bitcoin and Ethereum dropping to new lows, Altcoins are getting smashed even further. Many are getting excited and ready to buy the dip. This could be the buying opportunity of a lifetime or a failed purchase. Let me explain why.

Back on March 15th when Bitcoin was 40,9% down from its all-time high, I produced the following chart in excel:

This chart shows you what gain is required to recover from a loss. As you can see, once you pass -50% of the loss, the gain required to recover the loss starts getting crazy!

If you have crypto with an 80% loss, you will need it to x4 in order to recover its previous high. At 90%, you are looking at a x9!

Let's look at a few of the top cryptos and see where we are now, just 3 months later:

Bitcoin - $19494 is 71,7% from its ATH. It would require a greater than 233,34% gain to get back there.

Ethereum - $1035 is 78,6% from its ATH. It is just under need to x4 to get back to its ATH.

BitcoinCash - $119 is 96,8% from its ATH. It requires more than a x9 to get back to near its ATH!

Cardano - $0,46 is 84,9% from its ATH. It requires more than a x4 to get back to its ATH.

Hive - $0,35 is 89,5% from its ATH and requires nearly a x9 to get back to where it was.

These are just a few examples. Some may be able to give this performance again, but for some, it may just be too much to ask. Therefore you should take care when filling your bag to not pack it full of junk.

Thanks for reading.

Resources:
Crypto prices and ATH data taken from [Coingecko]
Title image created in Canva using image source