The recent sharp decline in Bitcoin's price has reignited debate in the markets. Bloomberg's senior ETF analyst Eric Balchunas responded to both criticism and “Bitcoin is dead” comments in a social media post.
Balchunas reminded that Bitcoin has experienced much deeper corrections in its nearly fifteen-year history, and each time it has managed to reach new all-time highs.
This performance, the analyst argues, is similar to that of assets like tech giants Apple and Amazon, which consistently deliver long-term returns. Therefore, given past examples, Bitcoin's current downturn should be read as a new chapter in the asset's resilience story.
The analyst also highlights the discomfort Bitcoin has caused within mainstream economic and financial circles. Over the years, the asset has possessed a unique ability to “anger the right people,” he says, and this is part of Bitcoin's appeal. However, Balchunas cautions investors when approaching BTC, stating that the asset's high volatility has a “hot sauce” effect, highlighting the importance of properly calibrating risk appetite.
BTC is trading at $84,636, a partial recovery from the recent sharp drop. It's down approximately 2.92% in the last 24 hours and is still down 10.82% on the week.
*This is not investment advice.
