Bitcoin (BTC) is up nearly 170% after the European Central Bank (ECB) warned of an impending “rundown.”
like famous The BTC price action announced by cryptocurrency proponent Eric Wall and others on December 4 went completely against economists’ predictions.
ECB Bitcoin Myopia: “What’s Wrong Again?”
When the ECB published a blog post commemorating Bitcoin’s demise on November 30, 2022, the price of Bitcoin was only $16,400.
The post, which comes shortly after the collapse of the FTX exchange and subsequent market flight, argued that even those levels are a stopping point on the way to new lows.
“Bitcoin value peaked at $69,000 in November 2021 before falling to $17,000 in mid-June 2022. “The value has since fluctuated around $20,000.”
“For Bitcoin supporters, the apparent stabilization is a sign of rest for a new leap forward. However, it is more likely that this is the last artificially induced gasp before heading down a path of nothingness. This was predictable even before FTX went bankrupt, sending the price of Bitcoin well below $16,000.”
This “last gasp” occurred continuously at first. Ironically, after gaining % on the date of publication, BTC/USD saw a comeback of $16,400 in mid-December. It has since made a rapid comeback, increasing by 70% in the first quarter of 2023 alone.
A year after the ECB’s early death note, Bitcoin price has hit its highest since April 2022. Bitcoin is at $43,800 at the time of writing, 166% higher than when banks sounded the alarm, according to data from Cointelegraph Markets Pro and TradingView.
Philip Swift, founder of statistics platform Look Into Bitcoin, joined Wall in his satisfaction about this amusing mistake.
“You want to see it,” he said. I left a comment. While reposting the chart from Wall on X (formerly Twitter).
Alex Thorn, head of enterprise research at cryptocurrency education resource Galaxy, questioned the ECB’s capabilities.
“I think this is really good,” he said. answered On the wall.
“If they’re so wrong about this, what else are they wrong about?”
“Yes” to CBDC, “No” to BTC
The ECB is known to be a Bitcoin skeptic, with both the bank and its senior officials often weighing in on the market.
Related: Breakout or $40K Bull Trap? 5 things you need to know about Bitcoin this week
Last month, ECB President Christine Lagarde complained that her son “ignored” her advice on investing in cryptocurrencies and lost money as a result.
“As you can tell, I have a very low opinion of cryptocurrencies,” Lagarde said in a speech quoted by Reuters.
As Cointelegraph reported, the ECB is currently preparing for the possible launch of a central bank digital currency (CBDC) and is facing intense scrutiny after Lagarde admitted its usefulness in ‘controlling’ trading.
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