Last Sunday, Bitcoin had dropped 13% in three days, to $76,790.
By Thursday it had dropped another 21%, to $60,062.
This morning it's at $69,549 — up from Thursday, down from Sunday, but 44% lower than its all-time high in October of $123,742. In short, Bitcoin "is down almost 30% this week alone," reports CNBC:
"This steady selling in our view signals that traditional investors are losing interest, and overall pessimism about crypto is growing," Deutsche Bank analyst Marion Laboure said Wednesday in a note to clients. Growing investor caution comes as many of the sensationalized claims about bitcoin have failed to materialize. The token has largely traded in the same direction as other risk-on assets, such as stocks... and its adoption as a form of payment for goods and services has been minimal... While many in the crypto market have previously credited large institutional investors with supporting the price of bitcoin, now it is those same participants who appear to be selling. "Institutional demand has reversed materially," CryptoQuant said in a report on Wednesday.
But not everyone accepts that answer, the Wall Street Journal reported Saturday. "The worst part for some of crypto's permabulls is that they aren't sure what exactly caused the crash":
The selloff left many of the market's luminaries — those so well-known that they go simply as "Pomp" and "Novo" and "Mooch" — searching for answers... Ether dropped 24% to $2,052, off 59% from its own high of last year. Both tokens staged furious rallies Friday, but the week remained a historically bad one for crypto. And few seem to know what went wrong. Market theories for the selloff ranged from investors' pivot toward the prediction markets and other risky bets, to widespread profit-taking after a blistering bull run. "There was no smoking gun," said Michael Novogratz, who runs Galaxy Digital, a crypto merchant-banking and trading firm...
"If you ask five experts, you'll get five explanations," said Anthony Scaramucci, who served for 11 days as communications director during Trump's first term and is among the best-known crypto bulls at his firm, SkyBridge Capital.
"No, but seriously: What's going on with bitcoin?" reads the headline at CNN, with a story that begins "Bitcoin is acting weird... "
Crypto is notoriously volatile, and it's gone through numerous crashes that are bigger than this one. What's strange is this: Bitcoin's four-month slump has come at a time when, in theory, it had everything going for it.
Economist Paul Krugman points out the price of Bitcoin is now lower than it was before America's 2024 election, when candidate Trump promised to make cryptocurrency "one of the greatest industries on earth."
CNN seems to agree with CNBC that what's behind this new crypto winter is "Mostly doubts that bitcoin is 'digital gold,' after all..."
Thanks to Slashdot reader fjo3 for sharing the news.
Read more of this story at Slashdot.
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