The bitcoin price crashed through another vital support level on Thursday, hastening a decline that has seen the leading cryptocurrency fall nearly 50% from its yearly high.
Bitcoin has recovered from these punishing reversals before, but one legendary trader predicts that this time will be different.
Mark Dow, a former US Treasury and International Monetary Fund economist, says that there’s no recovery coming. “Bitcoin is dying,” he boasted on Twitter.
It’s not unusual for the bitcoin bears to come out of the woodwork during dramatic market pullbacks to boast about their prescience. Crypto investors have grown accustomed to the death knells. After all, skeptics have been predicting its demise for a decade – one curated list includes nearly 400 separate “bitcoin obituaries.”
However, Dow is no garden-variety crypto skeptic. He famously began shorting bitcoin in late 2017 when the price ballooned to just under $20,000. He rode the crypto market’s brutal decline all the way down to about $3,500, where he finally closed his short position.
Dow believes the flagship cryptocurrency is locked in an “echo bubble unwind,” which will feature “occasional upside spasms” like the ones investors enjoyed earlier in 2019. However, he expects to observe “progressively weaker FOMO” as BTC’s Dec. 2017 highs grow smaller and smaller in the rearview mirror.
Eulogy made by Mark Dow