Amazon and Bitcoin: A Tale of Resilience
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In the world of global finance, looking at different sectors can help us understand how growth and recovery work. An analysis by Eliézer Ndinga, Global Head of Research at 21shares, highlights surprising similarities between Amazon’s journey after the dot-com bubble burst and the recent experience of Bitcoin and other major cryptocurrencies. History doesn’t repeat exactly, but it often “rhymes,” showing patterns even in new markets.
Collapses and Recoveries: amazon and Bitcoin Compared
The Collapse of Amazon and Cryptocurrencies
In 2000, when the Internet bubble burst, Amazon (AMZN) saw its stock value drop about 95%. It was a huge fall that seemed like the end for a promising tech company. Compared to this, the recent drops in Bitcoin (77%) and Ethereum (82%) in 2022 seem less severe. This shows that even strong, innovative companies can face major crises, which can sometimes lead to a comeback.
Market Concentration
In 2003, even though investors were cautious about the internet, Amazon already controlled about a third of e-commerce in the United States. Today,Bitcoin,Ethereum,Solana,and the leading stablecoins make up over 80% of the total cryptocurrency market value. This concentration grew even more after the FTX situation, giving Bitcoin an even bigger advantage. Markets tend to focus on a few key players, both in the tech world of the early 2000s and in today’s crypto market.
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