As of 5:00 p.m. on the 22nd, Bitcoin was trading at $68,961, down more than 20% from the start of the year. The first 50 days of the year marked the worst performance since Bitcoin’s inception. From its October peak of $126,198, Bitcoin sits roughly 41% lower. Over the past five months, the price has continued to decline, marking the longest downturn since 2018–2019.
The Motley Fool and other industry sources note that Bitcoin ETFs have seen about $4 billion flow out in the first five weeks of the year. Equities have been buoyant, but Bitcoin’s price weakness has left investors puzzled. Gold prices are rising, casting doubt on Bitcoin’s narrative as “digital gold.” The next halving is not until 2028, limiting near-term upside catalysts.
Yet history suggests mood shifts can come quickly. After sharp drops, Bitcoin has historically rebounded strongly: in 2014 the price rose 35%, in 2018 about 95%, and in 2022 around 156%, with an average rebound near 95%. April has historically been favorable for Bitcoin, with eight of 13 Aprils ending higher since 2013 and an average return of roughly 13%. Crypto remains highly volatile, and investors should tread carefully.
Leave a Reply