As the era of cheap money has hurtled to an end, lowering liquidity in the markets, trading in the sessions ahead is set to stay volatile.
Bitcoin is currently trading around $42k, which is still down from its all-time high price of $68k in November 2021, but well above its recent lows of $35k.
Some see here a pattern linked to bitcoin’s halving cycle. Bitcoin’s block subsidy, the amount of bitcoin created with each new validated block, is cut in half roughly every four years.
According to economists, a speculative bubble occurs when asset prices have come unhinged from their fundamentals. And, indeed, the bitcoin price chart is reminiscent of the 17th-century tulipomania.