Bitcoin Defies ECB's 'Irrelevance' Warning, Records 170% Surge
Summary:
Despite the European Central Bank (ECB) predicting Bitcoin's (BTC) inevitable fall to obsolescence in November 2022, the cryptocurrency has displayed a contrary performance by surging almost 170%. BTC was valued at $43,800, a year after the ECB's prediction, 166% higher than the price at the time of the warning. The ECB's blunder led crypto aficionados to challenge the bank's accuracy about other matters as well. Meanwhile, the ECB is contemplating the rollout of a central bank digital currency (CBDC), which Christine Lagarde, the ECB Chief, admits could be used for transaction control.
Despite the European Central Bank's (ECB) warning about Bitcoin (BTC) becoming "irrelevant", the cryptocurrency has surged by almost 170%. On Dec. 4, observers like crypto advocate Eric Wall pointed out how BTC's performance has starkly contradicted economic forecasts. When the ECB caution was published on Nov. 30, 2022, BTC was trading at a mere $16,400, right after a temporary market crash involving the FTX exchange.
The ECB blog post, centered around the 'death' of Bitcoin, postulated that the then-current trading value was a mere pit stop before its continued descent. Pointing out the epic plunge of Bitcoin's value from $69,000 in November 2021 to $17,000 by mid-June 2022, the post asserted that the likelihood was more of an artificial boost before a tumble into oblivion.
Interestingly, against all expectations, instead of declining, the BTC price fared well. Following an initial rally on the blog post's release date, it re-tested the $16,400 mark in mid-December. Swiftly rallying, BTC augmented by 70% in Q1 of 2023 alone.
As of now, a year post the premature pronouncement of Bitcoin's death by the ECB, the crypto king has reached its zenith since April 2022 — sitting at $43,800, or 166% above the value when the ECB issued the warning.
Juxtaposing the humorous fail, Philip Swift, the statistics platform Look Into Bitcoin's creator, echoed Wall's gratification. Philip gleefully reposted a chart by Wall on X (formerly Twitter), remarking, "You love to see it". Alex Thorn, the head of firm-wide research at crypto education resource Galaxy, questioned the ECB's proficiency. "This is the best it gets", he rebutted. He further questioned, "What else could they be mistaken about?"
The ECB has been a noted Bitcoin critic, with the market perspectives by the bank and its high-ranking officials frequently landing them in embarrassments. Last month, ECB's Chief Christine Lagarde rued her son's crypto investment based on her advice, leading to losses. The ECB is now contemplating the introduction of a central bank digital currency (CBDC), which has been under serious examination after Lagarde conceded its use for transactional 'control'.
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Published At
12/6/2023 12:20:15 PM
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