Death by 1,000 Cuts
If you like roller coaster rides, then you should love Bitcoin. Bitcoin investors have been on a stomach-churning ride for the past few months.
Bitcoin traded at $33,537 on February 1 before really taking off. By mid-April, it topped out at around $64,829 before sliding down.
Last Wednesday, Bitcoin suffered a single-day collapse of 30%. Then, yesterday afternoon, Bitcoin plunged sharply to $31,227, over a 50% decline since its April high.
“Never fear!” say the Bitcoin cheerleaders. Bitcoin has had many drops of that magnitude or even greater in recent years and has bounced back to new highs every time.
That’s true. So, it’s too soon to talk about the demise of Bitcoin based on a few bad weeks of price action. And it did bounce back today to over $39,000.