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Is it time to buy bitcoin?
11 May 2022 (507 views)  

Bitcoin reached a high of $67,000 on 5 Nov 2021. It has dropped by 53% over a period of six months to the current price of $31,700 on 11 May 2022.

The current level is at the bottom of the range for the past 12 months. 

Will it rebound from from this bottom?

Bitcoin enthusiasts have to beware of 3 negative factors:

1) Bitcoin does not have any intrinsic value. It is a speculative bubble.

2) Proponents argue that bitcoin is an alternative asset. When investors move out of stocks, bonds or fiat currencies, they will buy bitcoin. This did not happen during the current market downturn. When stocks drop, bitcoin followed. Bitcoin has proved to be not a good alternative store of value.

3) Some corporates have invested in bitcoin. When these corporates decide to move out of bitcoin (as it failed to be a good alternative asset class), bitcoin may drop.

There is a likelihood that bitcoin will break down the $30,000 support line, and crash sharply.

Note - this is a personal view. I am not giving investment advice. 

Tan Kin Lian


Is it time to buy bitcoin?
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Bitcoin reached a high of $67,000 on 5 Nov 2021. It has dropped by 53% over a period of six months to the current price of $31,700 on 11 May 2022.

The current level is at the bottom of the range for the past 12 months. 

Will it rebound from from this bottom?

Bitcoin enthusiasts have to beware of 3 negative factors:

1) Bitcoin does not have any intrinsic value. It is a speculative bubble.

2) Proponents argue that bitcoin is an alternative asset. When investors move out of stocks, bonds or fiat currencies, they will buy bitcoin. This did not happen during the current market downturn. When stocks drop, bitcoin followed. Bitcoin has proved to be not a good alternative store of value.

3) Some corporates have invested in bitcoin. When these corporates decide to move out of bitcoin (as it failed to be a good alternative asset class), bitcoin may drop.

There is a likelihood that bitcoin will break down the $30,000 support line, and crash sharply.

Note - this is a personal view. I am not giving investment advice. 

Tan Kin Lian