Kicking Bitcoin While It's Down
|I stopped covering bitcoin a couple of months ago simply because it became boring. The wild swings of yore made it fun to trade for a while, and subscribers may recall that we did pretty good at it. But bitcoin has settled into a rut, bringing out the worst in those who once adored it; now they delight in kicking it while it’s down. A recent headline at Bloomberg.com captured their feisty turn toward disrespect: Bitcoin Is Worthless, Bubble May Pop Soon, Allianz Global Says. And here’s another, from a seer who discerns only dark clouds on the horizon: Bitcoin’s ‘Death Cross’ Looms as Strategist Eyes $2,800 Level. I could make a technical case for $1800 myself, and it wouldn’t surprise me if the eventual bottom is even lower than that. But why bother? It’d just be an educated guess, and no one would trade it anyway. But let me be clear: I am not looking for bitcoin’s demise, but rather for a second-wind rally that eclipses the old highs. In the meantime, cryptocurrency’s flights of fancy will be subdued and limited, mainly because of the heavy losses suffered by hoards of amateurs, dabblers and other speculators, particularly early adopters. In at prices below $500, they figured they couldn’t lose when the ‘cryptos’ soared above $10,000. Some bought more bitcoin on the way up and at its heights. It is the very real damage they suffered on the way back down to $5900 that is weighing on bitcoin at the moment and which will continue to hold bulls in check.
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