Bitcoin has rebounded to eclipse the $7,000 mark for the first time since August 6, extending its winning streak to four days.
The news will be welcome for proponents of the cryptocurrency, but offers little comfort to anyone who bought into the market when Bitcoin was peaking near $20,000 last December.
Bitcoin is still trading higher than it was this time last year, but even with these gains, the cryptocurrency is down by around $10,000 from its year-to-date highest opening price of $17,142 on January 7. Its lowest point this year came on June 29, when it opened at $5,845.20.
Indeed, the bubble has burst for cryptocurrencies overall, with the market falling from more than $800bn to $200bn. Multiple attempts by the Winklevoss twins to launch a Bitcoin ETF have been stymied by the Securities and Exchange Commission. And even crypto stalwarts are growing pessimistic that Bitcoin, and other currencies like it, will ever regain their prior lustre.
“Sadly, I have to report low conviction today,” one crypto trader lamented in an emailed note to the FT last week. “There’s also the issue of tepid fiat-crypto exchange volumes which speaks to low retail demand and a lack of fresh retail capital entering the ecosystem.”