Poor Bitcoin Is Crashing
Where do we really run to when even the so-called digital gold begins to stumble? Moments like this remind you of the wisdom of having your yams safely stored in your barn. The challenge with cryptocurrencies, especially now that institutions have embraced them, is that they lack the stabilizers of traditional enterprises .
Yes, no balance sheet, no P&L statement to counter the tides of sentiment. When you attack Tesla, the company can respond with a solid quarter of rising sales and earnings. But Bitcoin? It has no fundamentals to defend itself; only the faith of the faithful.
The sell-off in cryptocurrencies accelerated on Tuesday, with Bitcoin dipping below $100,000 for the first time since June. Its price dropped as much as 6.5% to $99,963 before rebounding slightly, marking a 20% plunge from its all-time high reached last month, according to data compiled by Bloomberg. Meanwhile, Ether, the second-largest cryptocurrency, slumped almost 10%. Tuesday’s downtrend comes amid a broader sell-off in tech stocks, fueled by concerns over steep valuations in artificial intelligence-related companies.