The extreme (and very unusual) low volatility in Bitcoin did not last too long. You Wouldn't Believe What The Most Stable Asset Is Right Now.You Wouldn't Believe What The Most Stable Asset Is Right Now - Part II.Recall that we were quite impressed/surprised when Bitcoin has become one of the least volatile assets during October, when the world equity markets ( SPY, DIA, QQQ, IWM, IVV, VTI, VOO, VEA, EFA, IEFA, VWO) collapsed? It's back! And no, I'm not referring to Arnold Schwarzenegger here. ![]() I guess that's (at least partially) the power of management fees. Unlike Bitcoin, it's now down 89% from its peak last December (versus "only" 83% for Bitcoin itself). Just like Bitcoin, GBTC also hits a 16-month low. To put that in perspective, the longest streak ever was 1,176 days (from December 2013 to February 2017), more than three full years.Īnd when things are rough for Bitcoin, they are as rough - if not worse - for the Bitcoin Investment Trust ( OTC:GBTC). In the last three months of 2017, Bitcoin hit a new all-time high once every three days, on average.Īs of, Bitcoin has gone 360 days - almost one full year - without a new high. Here are the largest drawdowns in Bitcoin's history: Yet, it's interesting to see how these numbers compare to its trading history. So Bitcoin is i) hitting a 16-month low, ii) down 83% from its peak last December, and iii) down 68% over the past year, its worst Y/Y return since February 2015. As such, it's no wonder to see that Bitcoin weakness is very much associated with the Greenback global strength. The US Dollar ( UUP, USDU) is higher against every major global currency in 2018. With Berkshire holding 24% of its liquid invested portfolio in a single stock, even if that stock is called Apple ( AAPL), I can't rule this out. I wonder whether and at what number the two market caps might meet. To put this in perspective, a change/loss of $422B is not too far of the entire market cap of Berkshire Hathaway, Inc. It was over $512B at the end of 2017, and it's lower than $90B now. The market cap of the top 20 cryptocurrencies has shrunk by no less than 82%. You know what? Suddenly, -83% off peak and/or -71% total return in 2018 don't look that bad. ![]() (Sorted by % Below All-Time High, from worst to best) ![]() Few days ago we've touched the 52-week low at $3,215.ĭuring the past 7 years (2011-2017 inclusive), there was only one year in which Bitcoin lost value - 2014 - when the price dropped 58%.Īs it stands now, unless a miraculous shift happens till year-end, 2018 will go down as the worst year for cryptocurrencies in (their relatively short) history. It's no secret that Bitcoin ( BTC-USD, COIN, OTC:GBTC) isn't - and never been - suitable for the fainthearted.Īt the current price of ~$3,400, we are talking about an 83% decline from the peak price of $19,891. While this is always true, for any asset whatsoever, we get much more of the former (lower) than of the latter (safer). It was only 25 days ago when we wrote that " The Lower It Goes, The Safer It Gets". So would you be my baby*? Source/Lyrics: Savage Garden - "To The Moon & Back" ![]() If you'll be, if you'll be my baby* I've got a ticket for a world where we belong.
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