Bitcoin Drops 40% in Four Months. Bloomberg Blames Absence of Buyers and Belief (yahoo.com)
- Reference: 0180717032
- News link: https://slashdot.org/story/26/02/01/2146224/bitcoin-drops-40-in-four-months-bloomberg-blames-absence-of-buyers-and-belief
- Source link: https://finance.yahoo.com/news/bitcoin-break-below-80-000-061355911.html
"What began as a sharp crash in October has morphed into something more corrosive: a selloff shaped not by panic, but by absence of buyers, momentum and belief."
> Unlike the October drawdown, there's been no obvious spark, cascading liquidations or systemic shock — just fading demand, thinning liquidity, and a token that's untethered to broader markets. Bitcoin has failed to respond to geopolitical stress, dollar weakness, or risk rallies. Even during gold and silver's violent swings in recent weeks, crypto saw no rotation. Bitcoin fell nearly 11% in January, marking its fourth straight monthly decline — the longest losing streak since 2018, during the crash that followed the 2017 boom in initial coin offerings...
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> Even more striking than the drop itself is the relative lack of optimism around it on social media. In a space known for relentless bravado and "number go up" memes, Bitcoin's slide has been met with little cheerleading or dip-buying fanfare... [Despite legislative wins and some institutional investments] Many investors say that optimism was front-run. Prices rallied early — and then stalled. Meanwhile, spot ETFs continue to bleed, a sign of weakening conviction among mainstream buyers — many of whom are now underwater after buying at higher prices.
On Thursday, Bitcoin closed at 88,228. By Sunday it had plunged another 13%, to 76,790...
[1] https://finance.yahoo.com/news/bitcoin-break-below-80-000-061355911.html
It would have dropped even faster, but... (Score:3)
Michael Saylor and Strategy have been buying up a lot of Bitcoin on it's way down. This wasn't a trivial amount, either... we're talking tens of thousands of Bitcoin for tens of millions of dollars. It will be interesting to see what the bankers who lended him the money to buy that crypto will do if Bitcoin drops even further and they start showing huge losses.
Re: It would have dropped even faster, but... (Score:3)
I don't know enough, but I believe he has a bunch of cash set aside to buy, and a seperate pool of funds to pay distributions. He can't be margin called since he issued debt to fund things. The big bet is how much will BTC crash, and how long before the next bull market? If you can get the timing right just a little, you'll be able to make a lot of money!
BTC is crappy design (Score:2)
Not scalable. Very slow low bandwidth. Expensive to use. Not actually encrypted nor anonymous; actually a privacy nightmare mich worse than credit cards. Other crypto solved these problems. Not crappy BTC. Everybody buys drugs with superior fintech these days.
Re: (Score:2)
What's better from a privacy perspective? I've seen monero recommended but not sure if there are other better coins. It's hard to find exchanges that will allow the purchase of monero with normal currency. There are also swap exchanges, but I'm not sure how hard they are to use.
Re: (Score:1)
"Not scalable. Very slow low bandwidth. Expensive to use."
These problems were solved a very long time ago.
"Not actually encrypted nor anonymous; actually a privacy nightmare mich worse than credit cards."
This is a feature for bitcoin, not a bug. Do you know how many undisclosed monero cracks there have been? Nobody does. But everyone who wants to hold bitcoin long knows there have been ZERO because not only could we all see it on the blockchain but we'd know where the money went. Bitcoin isn't ultimately fo
LOL (Score:1)
> But less than four months later ...
Imagine having $100 in your wallet. Four months later you go into a store to buy something and you are told that your money is only worth $50 now. That is why cryptocurrency is useless bullshit.
Re: LOL (Score:2)
Go ask people who bought silver near all time highs before Friday's epic selloff.
Re: LOL (Score:2)
Thats fine but the difference is that silver is an actual thing with a measurable quantity.
Re: (Score:2)
Silver is similar to bitcoin in the sense that both are used as speculative assets. By contrast, bonds have a contractual rate of return, and equities are shares in productive companies with earnings.
Re: (Score:2)
Silver hasn't been a good speculative asset in over 60 years. Expand the kitco chart to max and look. Big spikes in the 80s, 2008-2012, and now. That's the behaviour of a hedge, a store of wealth.
Re: (Score:2)
Yes, silver had an epic selloff in one day. The last 30 days saw silver go from 71.02 to 78.53. Epic. If you view it as an investor and not a day-trader, the price of silver is too high. Selling is an obvious and prudent choice.
Re: (Score:2)
Sure, but bitcoin is a hell of a lot more volatile than the US dollar, for example.
Shocking! (Score:1)
"We're going to invent a completely new form of currency that will be better than the standard model used for millennia. Trust us!"
(Twenty years pass...)
"Um, guys? Why haven't we taken over the world yet?"
buy high sell low! (Score:2, Interesting)
I sold the last of my physical silver on Wednesday around $110 when everyone said it's going to infinity. I'm going to buy Bitcoin starting at 70k when everyone says it's going to zero. If you like to speculate, you buy low, and sell high. And never use leverage or margin.
Liquidity was always a huge problem (Score:2, Insightful)
A lot of people have lost their shirts. Meanwhile with Trump as president there's basically no money laundering laws being enforced. So why bother going to the trouble of using crypto to launder your money? And at the end of the day money laundering is the killer app for cryptocurrency.
Bloomberg Blames Absence of Buyers... (Score:2)
So basic economics of supply and demand?
Way to go Bloomberg... Right on the forefront
As with all scams (Score:2)
eventually the public wisens up then you need to find a new one.
More "belief" in AI (Score:2)
Hey, when you've got a lock on data center facilities including electrical power and water, your "belief" can quickly change when something more lucrative than cryptocurrency comes along.
Sell NFTs ! Sell Bitcoin ! Buy AI ! (Score:2)
I had a couple of million, so I bought NFTs, got out of that with a million left and started riding the Bitcoin wave, got out of that and I hereby declare I am putting all my 10 grand into OpenAI.
You read it here first, folks.
lost its value (Score:2)
Crypto appealed to a lot of peoples greed when they thought there was tremendous upside to buying. That upside idea has really diminished if not evaporated, even as stagnant store of value bitcoin is very unappealing. It is a crap method for payments and has no intrinsic value. Even for criminal purposes it is getting dicey as the authorities are much better at tracing it now, even through tumblers and the various worldwide agreements on sharing tax information means it is not a good way to dodge tax either
Good... (Score:3)
We need the energy that's being wasted on blockchain calculations to run AI models instead, to herald in a golden future!
Re: Good... (Score:3)
It'll be back. Way too many people losing their money for crypto to ever go away.
Blame (Score:2)
I blame the loss on all the crypto fanboys switching to hype AI instead.
Re: (Score:2)
If we had a meme coin based on irony, you'd be rich.