Bloomberg senior ETF analyst Eric Balchunas has dismissed comparisons between Bitcoin and the 17th-century Tulip Mania, highlighting Bitcoin's resilience over 17 years. Unlike the tulip bubble, which collapsed after three years, Bitcoin has rebounded from six to seven major crashes, achieving new highs repeatedly. Over the past three years, Bitcoin has risen approximately 250%, with a 122% surge in 2024 alone.
Balchunas argues that Bitcoin's current decline resembles a correction from previous overbought levels rather than a bubble burst. He notes that even if Bitcoin's price remains stable or slightly declines in 2025, its long-term average annual return would still be around 50%. While both Bitcoin and tulips are non-productive assets, Balchunas points out that other non-productive assets like gold and rare art are also considered valuable, underscoring Bitcoin's distinct asset class status.
Bitcoin's 17-Year Resilience Distinguishes It from Tulip Mania, Says Bloomberg Analyst
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