The “Musk premium” has evaporated from Bitcoin markets, leading to the umpteenth wake-up call for anyone not on magic mushrooms: This is not the future of money. With price swings like a 26% fall in one month, the cryptocurrency is unlikely to be adopted as a widespread method of exchange any time soon. It’s about as useful as a chocolate teapot at the moment — you can’t even use Bitcoin to buy a Tesla.
For those willing to look past the cultish side of cryptocurrency, it’s obvious people are making money on the way down as well as the way up. While this is hardly a market immune to regulatory crackdowns or scams, for now the price moves look within the bounds of what technical analysis and commodities-style trading models would suggest — not just shifts triggered by those seeking to emulate crypto billionaire Christian Angermayer, who says he needed to ingest hallucinogenic fungi to “get” it.
Earlier this week, with Bitcoin trading at about $44,000, our Bloomberg News colleague Joanna Ossinger reported that traders were anticipating a further decline based on chart patterns. Specifically, they saw a risk of a drop through the 200-day moving average that threatened a move below $40,000. And so it came to pass: