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May 10, 2022 | Inconvenient Truth: Price Matters

Danielle Park

Portfolio Manager and President of Venable Park Investment Counsel (www.venablepark.com) 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: www.jugglingdynamite.com

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.

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May 10th, 2022

Posted In: Juggling Dynamite

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