Bitcoin’s Slide Dents Price Momentum That Dwarfed Everything
- Bitcoin drops quickly into a bear market with 20% decline
- Prior rally surpasses all others in past 50 years, BofA says
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While little exists intrinsically to judge the fair value of a digitized currency, comparing Bitcoin to other high-momentum assets of the past shows how heated its rally has become -- and why it’s vulnerable to swoons like Monday’s.
Last week, for example, Bitcoin managed to trade 179% above its average price over the past 200 days, three times as high as the Nasdaq 100 ever got during the heyday of the dot-com bubble. The digital coin was up 120% over the past 20 sessions, a rate of return that’s also three times the best gain the tech-heavy equities gauge ever saw.