A couple of days ago I commented on Bitcoin’s recent slide. Yesterday I went looking for explanatory incidents.
Bitcoin seems static, give or take, since Thursday. Nothing on the web really stood out for me, which in some ways is even more disturbing. This morning Molly White’s (no relation) Web3 is Going Just Great reported a $44 billion hiccup for Korea’s Bithumb exchange, but most of that was quickly recovered.
Still, smaller incidents (call it thievery) keep on occurring, and I’m thinking that current cryptocurrency users are beginning to transition to past tense, having tired of watching, or even experiencing, losses in their and others’ ‘virtual assets’.
And then there’s this:
Richard Farr, chief market strategist and partner at Pivotus Partners, has issued a stark prediction for Bitcoin (BTC-USD), setting a price target of zero for the cryptocurrency.
“Our BTC price target is 0.0. That’s not just for shock factor. It’s where the math takes us,” the strategist said, noting that Bitcoin (BTC-USD) has failed to function as a dollar hedge and instead operates as “a speculative instrument correlated to the Nasdaq.” …
The strategist also criticized Bitcoin’s environmental impact, stating that miners “are bleeding cash” while the network remains “horribly inefficient as a transaction processor and wastes tremendous amounts of energy.”
Farr’s assessment aligns with warnings from Michael Burry, the investor known for predicting the 2008 financial crisis, who cautioned that falling Bitcoin (BTC-USD) prices could trigger a self-reinforcing “death spiral.” [Seeking Alpha]
I have no idea who might be Pivotus Partners, but I cannot help but pay attention as the above remarks concerning cryptocurrency’s functionality, external costs, and volatility has a strong correlation with my own observations over the years.
In other words, I’m sure glad I’m not in cryptocurrency because the speculators, and if you use cryptocurrency, don’t kid yourself, you’re a speculator, may be riding a raft into a real maelstrom of disaster. Right now it appears they may have sprung a leak.
Here’s a summary provided by WaPo, itself perhaps swirling around in a vortex of doom.
