The recent sharp drop in Bitcoin prices has reignited the debate in the market. Eric Balciunas, senior ETF analyst at Bloomberg, responded to both the criticism and the “Bitcoin is dead” comment in a social media post.
Balciunas reminded that Bitcoin has experienced even deeper corrections in its nearly 15-year history, each time managing to reach new all-time highs.
Analysts argue that this performance 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 decline should be read as a new chapter in the asset’s resilience story.
Analysts also highlight the discomfort Bitcoin has caused in mainstream economic and financial circles. Over the years, the asset has had a unique ability to “offend the right people,” he says, and this is part of Bitcoin’s appeal. However, Balciunas cautioned investors when approaching BTC, saying the asset’s high volatility has a “hot sauce” effect and stressing the importance of adjusting risk appetite appropriately.
BTC is trading at $84,636, partially recovering from the recent plunge. It has fallen about 2.92% in the past 24 hours and is still down 10.82% for the week.
*This is not investment advice.
