Elon Musk and the People’s Bank of China were the culprits but it could easily have been something else
The cry from the bitcoin and crypto brigade during previous bursts of volatility was YOLO, or you only live once. That’s an easy thrill-seeking motto to utter when prices decline by the odd 10%. It becomes harder to cling to when the price is down by 30% in a day, and 50% in a month, and there’s panic in the air.
For true crypto believers, every decline is a buying opportunity – and, indeed, there was a late rally to limit losses. For the rest of us, though, the hallmarks of speculative excess have been present for a while. A trivial but telling example is the posters one can still see in London and other major UK cities that read: “If you’re seeing bitcoin on the underground/side of a bus/a billboard, it’s time to buy.” No, it’s time to think the party is over and the smart money is heading home.
