Bitcoin (BTC) has gained almost 170% since the European Central Bank (ECB) warned of its impending “irrelevance.”
As crypto proponent Eric Wall and others noted on December 4, BTC price action has done the exact opposite of economists' predictions.
ECB Bitcoin Myopia: “What Else Are They Wrong?”
Bitcoin was trading at just $16,400 when the ECB published a blog post dedicated to his death on November 30, 2022.
Shortly after the FTX exchange implosion and the subsequent market rout, the post argued that even these levels represented a stopping point on the way to new lows.
“Bitcoin’s value peaked at $69,000 in November 2021 before falling to $17,000 by mid-June 2022. Since then, the value has fluctuated around $20,000,” it said.
“For Bitcoin proponents, the apparent stabilization represents a breather on the way to new heights. However, it is more likely that it is an artificially induced last gasp before the path to insignificance – and that was already foreseeable before FTX went bankrupt and pushed the Bitcoin price well below USD 16,000.”
This “last breath” initially lasted. After ironically rising by % on the day of publication, the BTC/USD rate saw another rise to $16,400 in mid-December. Thereafter, there was a rapid comeback, resulting in 70% growth in the first quarter of 2023 alone.
A year after the ECB's early obituary, Bitcoin is at its highest level since April 2022 – at $43,800 at the time of writing, or 166% higher than when the bank sounded the alarm, according to data from Cointelegraph Markets Pro and TradingView shows.
Philip Swift, creator of the statistics platform Look Into Bitcoin, commented on the amusing error and, like Wall, felt satisfied.
“You love to see it,” he commented while reposting a chart of Wall on X (formerly Twitter).
Alex Thorn, head of corporate research at crypto educational resource Galaxy, questioned the ECB's performance.
“That’s really as good as it gets,” he replied to Wall.
“If they’re so wrong here, where else are they wrong?”BTC/EUR 1-week chart. Source: TradingView
“Yes” to CBDC, “No” to BTC
The ECB is known as a Bitcoin skeptic, and its embrace of the market by both the bank and its senior officials often causes embarrassment.
Related: Breakout or $40,000 Bull Trap? 5 things to know about Bitcoin this week
Last month, ECB chief Christine Lagarde complained that her son had “ignored” her advice about investing in cryptocurrencies and lost money as a result.
“I have, as you can see, a very low opinion of cryptos,” Lagarde said in a speech quoted by Reuters.
As Cointelegraph reported, the ECB is currently preparing for the possible launch of a central bank digital currency (CBDC), which has come under intense scrutiny after Lagarde acknowledged its usefulness for “controlling” transactions.
This article does not contain any investment advice or recommendations. Every investment and trading activity involves risks and readers should conduct their own research when making their decision.
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