Bloomberg ETF specialist highlights Bitcoin’s repeated recoveries and long-term strength as outdated bubble comparisons resurface
Bitcoin’s durabiility is once again at the center of debate, as a leading exchange-traded fund analyst argues that the digital asset’s long-term performance renders the “tulip mania” comparison fundamentally outdated. After 17 years of surviving market shocks and setting new highs, experts say Bitcoin has outgrown the bubble label critics still attach to it.
Bloomberg ETF specialist Eric Balchunas pushed back against renewed claims that Bitcoin resembles the 17th-century Dutch tulip frenzy, noting that the historical analogy no longer holds weigght. He emphasized that the tulip market inflated and collapsed within three years, while Bitcoin has weathered six to seven major downturns and consistently returned to record levels.
Balchunas highlighted that Bitcoin remains up more than 250% over the past three years and gained over 120% last year, even after giving back some of its speculative excess from the prior cycle. He added that market corrections are a normal part of asset behavior, and the current environment has been overstated by critics.
The tulip mania often cited as one of the earliest examples of speculative bubbles — saw rare bulbs briefly trade for the price of homes before coollapsing by more than 90% in 1637. Analysts argue that comparing this short-lived episode to a global, decentralized digital asset with years of adoption, regulation and institutional participation is misleading.
Balchunas also challenged the argument that Bitcoin’s lack of yield disqualifies it as a valuable asset. “Gold, art and collectibles are also non-productive, yet widely viewed as stores of value,” he noted.
Industry strategists echo this view, pointing out that no bubble survives multiple regulatory battles, exchange failures, halving cycles and geopolitical shocks — and still returns to new all-time highs.
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