The post BofA’s blunder: How bitcoin turned a ‘crash’ into a 1,000% surge appeared on BitcoinEthereumNews.com.

This is a segment from the Supply Shock newsletter. To read full editions, subscribe. When it comes to whether bitcoin is (or was ever) a bubble, the late John McAfee said it best.  “Those of you in the old school who believe this is a bubble simply have not understood the new mathematics of the Blockchain, or you did not [care] enough to try. “Bubbles are mathematically impossible in this new paradigm. So are corrections and all else.” That was in early December 2017, when bitcoin traded at under $17,000. It peaked one week later, stopping just shy of $20,000 to cap off a nearly three-year bull market. Four months passed, and bitcoin slipped by two-thirds to less than $7,000, marking the first act of a bear market that lasted only one year.  If only Bloomberg and Bank of America chief investment strategist Michael Hartnett had listened to McAfee. On this date in 2018, Bloomburg posted an article called “Bitcoin, the Biggest Bubble in History, Is Popping.” In analysis cited the article, Hartnett’s team plotted bitcoin’s most recent bull market against well-known asset bubbles — the Wall Street crash that ended the Roaring Twenties, the South Sea Company and Mississippi bubbles in the 18th century, and the often-cited Dutch tulip craze a century earlier. But there are bubbles, and then there’s price discovery. Dutch tulips had indeed exploded from a single guilder in early 1635 to 60 guilders two years later — a 5,900% rally — before collapsing by more than 99% in a matter of weeks.  Bitcoin, meanwhile, had managed 8,900% in the three years leading up to its December 2017 all-time high, starting at $224. That’s more returns than the South Sea Company, Mississippi Company, and Roaring Twenties bubbles combined. The original BofA chart implied bitcoin was the…

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Filed under: News - @ April 9, 2025 5:21 pm