- Crypto shakeout or is the HODLer dam breaking? A more than 50% plunge in the price of Bitcoin (BTC-USD) since mid-April is having some in the cryptosphere panicking, while steadfast believers say the contraction is shaking out the "paper hands." The debate follows Bitcoin's wild ride on Tuesday, which began with a heavy drop below the $30,000 support level, before bouncing back in afternoon trade. At the time of writing, Bitcoin is still strongly in the green, up 7.4% overnight to $33,954.
- The bulls: "Bitcoin is in a very rough patch now, and the technical picture in the current term doesn't look great, but we also have to keep in mind that Bitcoin makes most of its gains over 10 days in a single year," said Tom Lee, Head of Research at Fundstrat Global Advisors. "The idea that it's below $30,000 now, doesn't rule out the ability for this to create some really big gains before the year-end and potentially touch $100K or higher."
- The bears: "Any meaningful break below $30,000 is going to make a lot of momentum players to throw in the towel," said Matt Maley, chief market strategist for Miller Tabak + Co. "Therefore, even if Bitcoin is going to change the world over the long-term, it does not mean it cannot fall back into the teens over the short-term."
- Somewhere in between: "Bitcoin is not a payment system, and it is not a currency. In the best situation, it is a financial asset, and in the worst case, it is a pyramid scam," Bank of Israel Deputy Governor Andrew Abir said in a recent speech.
- Volatility could continue for quite some time... "Globally we are seeing a much more forceful crackdown on crypto by governments," wrote analysts at QCP Capital, a Singapore-based crypto trading firm. "China is now leading the charge, and this directive coming all the way from the top means it will continue reverberating throughout the lower levels for a few more weeks to come."
- Premarket action: MicroStrategy (NASDAQ:MSTR) +4.3%; Marathon Digital (NASDAQ:MARA) +2.7%; Riot Blockchain (NASDAQ:RIOT) +2.6%; Coinbase Global (NASDAQ:COIN) +1%; Grayscale Bitcoin Trust (OTC:GBTC) +0.3%.
- As the SEC continues to appear to drag its feet and delay passing a judgment on the VanEck Bitcoin ETF, the latter has filed for a new crypto fund.