Chart of the Day - Monday, March 4, 2024

🏆 Today’s Chart of the Day was shared by Phil Pearlman (@ppearlman).

• Bitcoin officially closed at an all-time high of $68,359 today after rising +8.3%. It’s completed a two-year base within a strong primary uptrend after recovering from a -75% drawdown. If this breakout holds, Bitcoin could easily reach six figures this cycle.

• From Warren Buffett to Jamie Dimon, some of the smartest minds in finance have repeatedly dismissed Bitcoin as a bubble. But as Phil points out, this thing refuses to go away. It’s much easier to call it a bubble than it is to understand this new and complex market.

• To be fair, it has gotten frothy in the past, and it’s hard to understand how an intangible digital asset of mysterious origin could be worth more than the average American’s salary. It’s lost over half its value five times in the past decade, but each subsequent recovery galvanizes bulls.

The takeaway: Bitcoin broke out to an all-time high today for the first time in more than two years. It’s easy to call Bitcoin a bubble, but bubbles don’t persistently recover to all-time highs like this after they pop.