Bitcoin can now not be in comparison with the “Tulip Bubble” attributable to its endurance and resilience over time, in accordance with Eric Balchunas, Bloomberg’s exchange-traded fund skilled.
“I personally wouldn’t examine Bitcoin to tulips, regardless of how dangerous the sell-off,” mentioned the senior ETF analyst on Sunday.
Balchunas identified that the tulip market rose and collapsed in round three years, “punched as soon as within the face and knocked out,” however Bitcoin (BTC) has “come again from like six to seven haymakers to achieve all-time highs and has survived 17 years.”
“The endurance alone warrants shedding tulip comparability, not to mention the truth that it’s nonetheless up like 250% [over the] previous three years and was up 122% final yr.”
Some folks simply hate this asset and need to enrage the individuals who prefer it, and that can most likely by no means change, he opined.
Earlier this month, “The Large Quick” investor Michael Burry referred to as it “the tulip bulb of our time.” In 2017, JPMorgan CEO Jamie Dimon famously mentioned Bitcoin was “worse than tulip bulbs” and a “fraud.”
Tulips pumped and dumped in three years
The Dutch tulip mania was a speculative frenzy within the Netherlands throughout the Dutch Golden Age. Tulip bulbs, which had been launched to Europe from Turkey, grew to become standing symbols amongst rich Dutch retailers.
Costs started rising quickly in 1634 and reached peak mania in 1636, when some uncommon tulip bulbs offered for greater than the value of a home in Amsterdam. The market all of the sudden collapsed in 1637 with costs plummeting by over 90% in a matter of weeks.
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The tulip mania is usually cited as considered one of historical past’s first recorded speculative bubbles, and gave rise to the well-known pump and dump chart sample.
Bitcoin and Tulips: a flawed comparability
Balchunas continued to state that each one Bitcoin has accomplished to this point this yr is surrender the acute extra of final yr.
So even when 2025 finally ends up flat or reasonably down yr, BTC continues to be working at round 50% of its annual common. Property are allowed to chill off now and again, even shares, and persons are “overanalyzing it,” he mentioned.
The ETF skilled additionally questioned arguments about Bitcoin being non-productive.
“Sure, Bitcoin and tulips are each non-productive property. However so is gold, so is a Picasso portray, uncommon stamps, would you examine these to tulips? Not all property must be productive to be helpful.”
Tulips had been “marked by euphoria and crash,” and that’s it; Bitcoin is a “completely different animal.”
Head of technique at German Bitcoin treasury firm Aifinyo, Garry Krug, concurred, stating, “Bubbles don’t survive a number of cycles, regulatory battles, geopolitical stress, halvings, change failures and nonetheless return to new highs.”
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