Bloomberg Analyst Responds to Claims That “Bitcoin Is Dead”

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.