Topline
Bitcoin slipped Monday to its lowest level since mid-November, a dip coinciding with a broader stagnation across asset classes in recent weeks, as one of the cryptocurrency’s top critics tore into bitcoin once again.
Still up 25% since Election Day, bitcoin is a part of a major slump across asset classes in recent … [+]
Key Facts
The price of bitcoin fell Monday to as low as $89,097, the first time the digital asset traded below $90,000 since Nov. 18.
Though bitcoin recovered to roughly $92,000 by about 3 p.m. EST, or 8 p.m. Greenwich Mean Time – the constantly traded bitcoin is typically measured in GMT – it was still on track for a 3% daily loss.
Bitcoin is now down 15% from its $108,000 all-time high hit last month, part of a wider slump also engulfing bond and equity markets tied to vanishing hopes for further interest rate cuts in the face of strong U.S. economic data and heightened inflation risks leading investors to move away from riskier assets.
Stocks of companies heavily linked to bitcoin struggled Monday, as shares of crypto exchange Coinbase and the world’s most valuable bitcoin miner Marathon Digital declined about 5% apiece to their lowest respective levels since November, while shares of the most famous corporate bitcoin holder Microstrategy fell 3%.
Chief Critic
Piling onto bitcoin’s slump were comments from JPMorgan Chase CEO Jamie Dimon in an interview with CBS published Sunday. “I just don’t feel great about bitcoin,” said Dimon, adding the $1.8 trillion cryptocurrency has “no intrinsic value.” Dimon, who is worth $2.6 billion and runs the U.S.’ largest bank, has long criticized bitcoin. But “just like I think you have the right to smoke, but I don’t think you should smoke,” so should crypto investors be allowed to trade bitcoin, Dimon added.
Key Background
Bitcoin is far from the only major asset to slide into correction territory, as fellow major tokens like ether, Binance coin, Solana and dogecoin have also endured more than 10% pullbacks from recent highs. Several big-name stocks are also down at least 10% from their recent peaks, including Nvidia, Palantir and Tesla. In its 15-year history, bitcoin prices have tended to suffer during high-rate environments and pop as rates go down.
Contra
Bitcoin is still up about 35% since Election Day as money flowed into the digital asset following the win of President-elect Donald Trump, a one-time bitcoin skeptic who embraced crypto on the campaign trail. And bitcoin still trades above the $80,000 to $90,000 Inauguration Day range predicted prior to the election by the highly bullish analysts at Bernstein.
