Following the cataclysmic collapse of the crypto market in 2022, with Bitcoin’s price plunging below $20,000, several critics slammed the coin, arguing that the bubble had finally burst.
However, in light of the current bullish market trend, Bitcoin enthusiasts, including Binance’s Changpeng Zhao (CZ), have begun calling out critics who claimed that the coin was dead.
A Faded Fad?
In a recent tweet, the ex-Binance CEO quoted a Bloomberg article from September 2022, which claimed that Bitcoin was “a faded fad.”
— CZ ???? BNB (@cz_binance) March 5, 2024
The article argued that Bitcoin’s price, which was down 78% from its all-time high (ATH) at the time, had no prospect of ever coming out of that “train wreck.” They wrote,
“Bitcoin looks absolutely dire and a four-figure price isn’t out of the question.”
It further refuted the coin’s position as a safe haven asset, likening it to the tulip mania. The article read,
“It’s safe to say that right now, it’s definitely not for preservation of wealth… Bitcoin’s collapse makes for a decent new entry in the tulip mania archives.”
Cat Got Your Tongue?
However, in an interesting turn of events, less than two years later, Bitcoin is making a dramatic comeback. The digital asset has defied critics and continued on an upward trajectory, regaining losses incurred during the 2022 crypto winter.
On Tuesday morning, Bitcoin came very close to its 2021 ATH, hitting a price of more than $68,700. Still, several market analysts believe the top coin could go up to $200,000 before the year runs out.
The current bullish sentiment is fueled by several factors, including the approval of a spot Bitcoin exchange-traded fund (ETF). The ETF offers institutional investors streamlined access to Bitcoin trading. The launch of the long-awaited spot Bitcoin ETF on January 10th has since unlocked the inflow of billions of institutional capital into the market.
Additionally, anticipation for the next Bitcoin halving, which is scheduled to take place on April 19th, 2024, has increased demand for the coin. Bitcoin’s upward trajectory has affected several other coins in the market, with meme coins like Shiba Inu (SHIB) hitting new records.
Consequently, despite critics’ claims, the growing demand for Bitcoin by both retail and institutional investors and the coin’s ability to bounce back from the catastrophic crash proves that it is not a fad. Bitcoin is here to stay.
