Same as UBER or WeWork. Hype keeping up a nonprofitable business' valuation. BTC stayed up because institutional money moved in, chasing the new, new thing. Eventually the fascination will evaporate...
Plenty of symbols are still "surprisingly" holding up. GME, a structurally bankrupt video-game retailer, is still worth $7.5bn with a stock price 25 times (!!!) where it was in June 2020. Super-gigacap TSLA is still trading at 100x earnings and for all intents and purposes hasn't declined at all. This bear market hasn't been "nothing" but it's also been (so far) one of the mildest bears in market history. All the more so when one considers how extreme things got on the upside, and the severe nature of economic turbulence. My instinct is to say that these things take time.
Too many bitcoin bulls expecting that to happen. We're not there yet. Give it another 5-10k points in the southern direction. Then maybe a significant bounce.
"Mildest bears" is an understatement. My experience with bear markets is violent, fast and gut wrenching. Here we are with some high flyers halved in price and yet it feels like nothing has taken place. I believe that's the FEDS doing; always coming to the rescue. The brutal bear is around the corner, the one we are used to. We will know once: 1) your landscaper is talking about it. 2) breaking news on CNBC on a Sunday night.
It's not "supposed" to be anything. It is what it is. All it's supposed to be is this: https://bitcoin.org/en/bitcoin-paper People on all sides of the argument decide all sorts of things about what it "is". I've said it before: Even if long term it protects capital from inflation better than other attempts to do so (and there are reasons to think this could happen), in the short and medium term the vast majority of trades in BTC are not for this reason and so it's price does not trade "based on" inflation. Its price follows other "things"...