In fact, one Bitcoin is worth less than half its all-time high of almost $69,000, reached in November 2021, and it slipped below $30,000 at one point on Tuesday before bouncing back up a bit. Ethereum, the second-most popular digital coin, has declined 17.5% since the Super Bowl. Many other digital coin prices have plunged too, falling prey to a general collapse in tech investment and a rise in the value of the dollar, as well as increased investor aversion to risky assets, economists said. Bitcoin’s lost value highlights a downside of a sector sometimes promoted as the future of finance for retail investors. While government officials and other skeptics contend cryptocurrencies are far too volatile to be treated like traditional assets, crypto trading exchanges are attempting to reel in TV viewers with Bitcoin giveaways and ads comparing cryptocurrency to important inventions like the wheel. U.S. financial regulators cautioned about the risk of loss, fraud, and theft in March, but then Fidelity announced plans to allow customers to include Bitcoin in their retirement accounts. That’s not to say more conventional investments are without risk. The S&P 500 Index has also fallen significantly in recent months. But its drop is small by comparison with Bitcoin. If you invested $10,000 in an index-based fund right after Super Bowl Sunday (cryptocurrencies trade 24/7, unlike stocks), it would have been worth 9.4% less, or $9,060, on Tuesday. Have a question, comment, or story to share? You can reach Diccon at dhyatt@thebalance.com. Want to read more content like this? Sign up for The Balance’s newsletter for daily insights, analysis, and financial tips, all delivered straight to your inbox every morning!
