Main = "Historical drawdowns, selected coins", # plot the historical DDs of some coins (BTC, ETH, BNB, DOGE) Main = "Historical drawdowns, all coins") As expected, extreme DDs (80% to 90%+) are the norm in cryptoland. We also plot the historical DDs of the 4 selected coins.
Although plotting all DDs in the same graph will make it hard to identify individual coins, it is interesting to show the pervasiveness of extreme DDs in crypto currencies.
BITCOIN MAXIMUM DRAWDOWN CODE
We can calculate the DDs for all coins using the code below. Max_values <- coin_pricesĬurrent_values <- coin_prices Max_inds <- apply(coin_prices, 2, which.max) The values can be obtained with the code below (although this is not very efficient). Finally, DOGE reached a peak of 0.68 on May 7 and is currently trading at 0.49 (a ~27% correction). Binance Coin dropped from a peak of 675 on May 3rd to about 524 (22% fall). For Ethereum, the peak was 4168 on May 11, and the price is currently hovering around 3500, a 16% fall. Plot(coin_prices$DOGE, main = "",īitcoin reached its all-time peak of 63503.46 on Apand was trading at $45275 on May 18, 2021, a ~29% correction. The graph below shows the the recent price history for Bitcoin, Ethereum, Binance Coin and, well, Doge: par(mfrow = c(2,2)) Most crypto currencies reached their peaks recently.
website %Ĭoin_returns <- CalculateReturns(coin_prices) We remove empty values and stablecoins (Tether and USDC). Instead, we scrape the Yahoo Finance cryptocurrencies page to get the 100 largest coins. However, changes in the way the data are represented in the site frequently break the package. crypto, in turn scrapes data from coinmarketcap. Most sources online use the use the crypto package to get historical data on cryptos. Getting data from the largest crypto currencies For the rest of this piece, we use the term “DD” to refer to drawdowns. In this short post, we explore how the recent sell-off in crypto compares with the drawdowns observed historically. Crypto currencies have historically gone through extreme drawdowns.
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