Buying opportunity or a bubble bursting? Bitcoin falls more than 30 percent since November high
There’s been no Santa Claus rally for the world’s most famous cryptocurrency.
As of this writing, Bitcoin is trading at US$47,231.90. That’s down 31 percent from its 2021 high of US$68,789.63, recorded on November 10.
Since Christmas Day, Bitcoin has fallen six percent in value.
But that could just be a dress rehearsal for what might be coming, according to Forbes crypto and blockchain contributor Billy Bamrough. He pointed to even higher losses last week for several other major cryptocurrencies, including ethereum, solana, cardano, XRP, and Binance’s BNB.
In early 2021, Elon Musk injected life into the cryptocurrency market through his Twitter feed.
https://twitter.com/elonmusk/status/1357914696645414913?ref_src=twsrc%5E…
Then in December, the Los Angeles Staples Center was renamed the Crypto.com Arena, thanks to a deal between a Singapore-based exchange and the arena’s owner and operator.
“In the next few years, people will look back at this moment as the moment when crypto crossed the chasm into the mainstream,” Crypto.com CEO Kris Marszalek told the Los Angeles Times.
Keep in mind people have been counting out the crypto market for years. One persistent critic, Peter Schiff, has been claiming for quite a while that the Bitcoin market is a bubble, even as the price remained high through much of 2021. And billionaire investor Warren Buffett once compared Bitcoin to rat poison.
Yet cryptocurrencies have retained considerable appeal, including with one of Buffett’s granddaughters.
Plus, the blockchain can serve as a useful hedge against inflation—as long as you don’t inadvertently toss a hard drive with your only key in the dump. The New Yorker recently published a tale about a Welsh investor with a half-billion dollars worth of Bitcoin who found himself in this predicament.
“If things had gone just a bit differently, James Howells might today be as rich as the Queen of England,” wrote D.T. Max in the opening sentence of his feature article.