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Bitcoin slips in another sign that retail trader mania is fading

The token is mired in its longest losing streak since December.
Image: Andrey Rudakov/Bloomberg

Bitcoin fell amid a wider retreat in assets that had earlier ridden a wave of stimulus-infused optimism among retail traders.

The largest cryptocurrency dipped 2% to about $52 950, a two-week low, as of 7:02 a.m. in New York. The token is mired in its longest losing streak since December. The wider Bloomberg Galaxy Crypto Index is also struggling.

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Speculation is growing that the latest stimulus checks in the US will be spent in the real economy rather than markets as vaccinations help return life to something closer to normal. The number of call options traded in the US has slipped from the records earlier this year and high-profile investments like GameStop Corp. and the ARK Innovation ETF are sliding.

A general Bitcoin downtrend is being “exacerbated by the move to value in general across asset classes” and away from areas like technology, said Vijay Ayyar, head of Asia Pacific with crypto exchange Luno in Singapore. The upcoming expiry of derivative contracts is adding to the volatility, he said.

Bitcoin is about $9 000 below a record of $61 742 set earlier in March, but remains 700% higher over the past year. The coin spiked briefly on Wednesday after a series of tweets from Tesla Inc. CEO Elon Musk announcing the automaker will accept the digital asset as payment.

The token remains mainly a vehicle for speculation and is unlikely to displace alternative stores of value, according to Blythe Masters, a former JPMorgan Chase & Co. executive who is now chief executive of Motive Capital. The Bank of International Settlement’s Benoit Coeure said the coin’s volatility makes it impossible to act as a currency.

Others argue institutional adoption of Bitcoin is expanding as part of efforts to diversify portfolios and hedge risks like faster inflation.

“The color and information we see from the street is largely from the institutional part of the market, and nothing has really changed in their view on the impact of stimulus on longer term inflation and the role of digital assets as a hedge to that,” said Matt Long, head of distribution and prime brokerage at digital-asset platform OSL in Hong Kong.

© 2021 Bloomberg


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Just a health correction.

It is going to be a lot of fun watching BTC revert to its fundamental value, ZERO. Maybe it takes a year, maybe it takes 5 years, but the day will come. At least tulips were pretty and sardines could be eaten, this bitcoin mania is going to be a historic embarrassment for many. Not to mention the joke of NFT artworks.

You know, this statement, “Bitcoin is going to zero” is so long in the tooth, I want to cringe everytime I hear it, especially because of the stupendous amount of money I really could have made when I wanted to invest on multiple occasions since 2013, had I not heeded to flimsical statements like this one. I don’t know how many times we have to hear this since 2013, then 2014, 2015, 2016, especially 2017, 2018, 2019, 2020, now 2021, but the blessed thing is still on an upward trajectory in spite of all the price fluctuations and continuing verbal flak it gets. I am so happy that in 2017 I went with my gut feeling against the tide, as difficult as it was, mustered up enough freakin courage to go against this type of never ending cryptocurrency criticism which was at its peak in 2017, dived in lock, stock and barrel. Having learnt a valuable lesson from being put off similarly by such negativity from investment opportunities that had arisen from past innovations, especially during their infancy like the internet, the cell phone, etc, etc, etc, when my conscience was saying go for it, but didn’t, a costly mistake. Here we are again in similar circumstances with cryptocurrencies and blockchain, with same old, same old naysayers. Only this time, having learnt from past experience, this time I’m all in. Thought I was a bit late in 2017, but, my goodness, who would have thought, after Bitcoin’s 2017 ATH, it would reach R 60 000. 2017 looks like a little bump in comparison to where the market cap is now, and other lessor known cryptos that also currently outperformed bitcoin’s performance exponentially. As impressive as bitcoin’s performance is during this current bullrun, some alts, like Cardano, for instance, outperformed the top cryptocurrency by thousands of percent. Does anybody have any idea what it is to experience a 12000% return on your investment within a year? My goodness. I still want to see another asset class do that. Yes, there’s speculation, but one will do alright if you know and understand what you are doing. Besides, with increasing adoption of this new technology by large institutions, countries and banks being underway, bringing stability, volatility and price fluctuations is proportionately decreasing. I’m very happy at my unmatched returns. And while the critics continue to miss out on opportunity like the naysayers of past innovations, innovations that are now a normal part of our daily lives, this current ATH of the cryptocurrency market cap is going to eventually look like a little hump in comparison to where the market is going to be down the line, in utility and value. Ignore it at your peril.

Lol, Bloomberg = Huisgenoot. How many % did BTC grow over the last 5 years…now that is a story!

End of comments.





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