Bitcoin Surges Despite European Central Bank’s Prediction of Irrelevance
Bitcoin (BTC) has defied the expectations of economists and gained almost 170% since the European Central Bank (ECB) warned of its impending “irrelevance.” This surprising price action has left many questioning the accuracy of the ECB’s predictions.
In a blog post published on November 30, 2022, the ECB claimed that Bitcoin’s value would continue to decline, even suggesting that the cryptocurrency was on the road to irrelevance. The post cited Bitcoin’s previous price drop from $69,000 in November 2021 to $17,000 by mid-June 2022 as evidence of its inevitable demise.
However, Bitcoin’s price did not follow the ECB’s projected path. After briefly revisiting the $16,400 mark in mid-December, the cryptocurrency made a swift comeback, gaining 70% in the first quarter of 2023 alone.
Now, a year after the ECB’s premature obituary, Bitcoin is trading at its highest level since April 2022, reaching $43,800 at the time of writing. This represents a 166% increase from the moment the ECB sounded the alarm.
Philip Swift, creator of statistics platform Look Into Bitcoin, and crypto proponent Eric Wall both expressed satisfaction with the ECB’s inaccurate prediction. Swift commented, “You love to see it,” while Wall questioned the ECB’s credibility, asking, “If they’re this wrong about this, what else are they wrong about?”
It’s worth noting that the ECB has a history of skepticism towards Bitcoin. ECB Chief Christine Lagarde has publicly expressed her low opinion of cryptocurrencies and even admitted that her son lost money by ignoring her advice on investing in crypto.
Despite its skepticism towards Bitcoin, the ECB is currently exploring the possibility of launching a central bank digital currency (CBDC). This move has sparked intense scrutiny, as critics argue that a CBDC would give the bank too much control over transactions.
While Bitcoin’s recent surge proves that it is far from irrelevant, it’s important to remember that every investment and trading move carries risks. Investors should conduct their own research and exercise caution when making decisions.