Bitcoin Price Bear Gloats: ‘BTC Down 65%’ ‘Total Crypto Apocalypse!’
- NYU Economist Nouriel Roubini is hyped over the massive bitcoin price drop since October.
- Altcoin prices are down too. Theories abound as to the causes of what could be the next crypto winter.
- The crypto industry’s leaders see opportunity in the bitcoin bear market.
Nouriel Roubini piled on the FUD Tuesday morning. As bitcoin’s price continues its plunge into what could be another crypto winter, the NYU economist suggested it’s the end of crypto entirely:
The tweet is classic Roubini. Dubbed “Dr. Doom” for predicting the 2007 housing bubble crash, he’s also warned against bitcoin, calling the cryptocurrency “overhyped” and the industry surrounding it a “cesspool.”
But his overtly political criticisms of bitcoin may call into question the earnestness and objectivity of his technical assessments. This June Roubini hyped commentary calling bitcoin a “right-wing nightmare,” tweeting:
The Bitcoin Scam: Despite the utopian claims of its proponents, Bitcoin is a right-wing nightmare which facilitates tax evasion, money laundering and environmental degradation.
Bitcoin Price Drop a Mystery
The sudden bitcoin and altcoin selloff has left analysts scrambling for answers. One digital asset advisory found the bitcoin futures market is driving prices down. It’s not new shorts coming in (a very risky game to play with an asset that has appreciated so sharply in the past), but weak longs selling off that has put downward pressure on prices.
One economic historian and crypto analyst has some rebuttals for the theory that crypto whales are pushing prices down to get a big 2019 tax write off. But it does appear that the movement of 10,000 BTC (worth $80,670,856 USD at the time) to Binance on Nov. 7 triggered the liquidity glut. Bitcoin’s price began to fall hours after the move from an unknown wallet.
Crypto Industry Sees Opportunity
The last time Nouriel Roubini felt vindicated by the bitcoin price plummeting, and declared the cryptocoin “bust for good,” its price did this:
While bitcoin’s price fell in November, interest in it has grown.
The words “Bitcoin” and “Bitcoin halving” have been increasing in popularity in Google’s search engine due to Bitcoin’s price dropping to its lowest levels since May. pic.twitter.com/w89FmKhLfs
— Cointelegraph (@Cointelegraph) November 25, 2019
Global search interest in bitcoin spiked to a three-month high as its price fell off a cliff mid-November. Search interest was led by Africa, with Nigeria, South Africa and Ghana among the top five regions Googling bitcoin.
The lower price makes the coin more appealing to those in the developing world whose needs represent a fantastic use case for bitcoin.
Bitcoin bulls see the coin launching past its previous all time high, maybe as soon as 2020. But only after another crypto winter freezes out the bitcoin “Twitter bulls.”
And lower prices create urgency for crypto innovations. That’s especially true in mining. Steep electricity costs create a price floor for the viability of mining as a business. Recent news of advances in “optical proof of work” for more energy efficient mining confirm this benefit of price contractions.
Reddit founder and Coinbase investor Alex Ohanian contends that crypto price winters are innovation springs.