To listen to the HODLer crowd back on January 26th, you would figure their elementary school flag football team had just won the SuperBowl. Arrogance, certitude, and Homer Simpson “in your face!” declarations ran amok. The surging public interest in bitcoin had renewed as well, illustrated by Google Trends:
I’ll repeat what I’ve always said: cryptocurrencies are a solution in search of a problem. Now that FB has started pushing the Libra concept on the world (causing even the POTUS to comment at length on it, declaring that crypto is “backed by nothing and is made from thin air” – – similar to, oh, say, the United States dollar bill) my puzzlement over crypto-fascination is even greater. I keep asking myself: am I just too dumb to get it? Or is Zuck just trying to push another moneymaking scam on the hapless people of Earth?
In any event, every crypto has turned tail, with losses of about 35% in the span of three weeks being typical. Sound stable enough for a currency to you?
Bitcoin, the leader of them all, hit its 61.6% Fibonacci level before exhaustion. If the Fibs continue to hold sway, I suppose it will find stability (if we may use such a lofty term) at about $9500.