- the source for market opinions


May 10, 2022 | Inconvenient Truth: Price Matters

Danielle Park

Portfolio Manager and President of Venable Park Investment Counsel ( Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog:

Bitcoin is off nearly 55% from its November peak, and 40% of holders are now underwater on their investments, according to new data from Glassnode.

That percentage is even higher when you isolate for the short-term holders who got skin in the game in the last six months when the price of bitcoin peaked at around $69,000.

And it’s not just the cryptos, the whole sector that’s sprung up around them is getting crushed, see Coinbase shares plunge almost 80% from November, amid a sell-off of cryptos and funds.

As mentioned in the CNBC segment, ARK Innovation ETF (in white below)-which was buying Bitcoin, Tesla and other innovators without concern for price or valuation, has now fallen more than 70% and given back all of its much-hyped “outperformance” as against the S&P 500 index (in blue).  This was inevitable.  More mean reversion is yet to come.

STAY INFORMED! Receive our Weekly Recap of thought provoking articles, podcasts, and radio delivered to your inbox for FREE! Sign up here for the Weekly Recap.

May 10th, 2022

Posted In: Juggling Dynamite

Post a Comment:

Your email address will not be published. Required fields are marked *

All Comments are moderated before appearing on the site


This site uses Akismet to reduce spam. Learn how your comment data is processed.