I tend not to get too excited about things, a characteristic that I believe to be a consequence of earning a living in dealing rooms around the world for nearly twenty years. That is not to say that I am not passionate about some things, just that I take life’s highs and lows in stride. Watching BTC/USD drop from last week’s heady levels to be once again close to $300 has me no more aerated than watching it jump from $250 to $400.
Three weeks ago, when bitcoin was beginning its climb, I disagreed with the contention that what we were witnessing was a recurrence of the bitcoin bubble. That argument, that Chinese exchange controls would push BTC/USD up past the $1100 high from 2013, was an exaggeration then, just as is the claim that the drop back to just above $300 is a sign of the imminent collapse of the currency. The simple fact is that the young upstart bitcoin is still volatile as it finds its natural level, and is still higher than it was before the jump.
That is not to say that the quick run up and back doesn’t present problems, though.