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Bitcoin Slides 5% as Euphoria Over New ProShares ETF Wanes

Bitcoin recently traded at $58,938. It remains up 101% year to date, though it has dropped 12% from last Wednesday’s record high.
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Bitcoin fell 5% Wednesday, as the euphoria from last week’s introduction of a bitcoin futures exchange-traded fund, ProShares Bitcoin Strategy ETF  (BITO) - Get PROSHARES BITCOIN STRATEGY ETF Report, waned.

The digital currency recently traded at $58,938. It remains up 101% year to date, though it has dropped 12% from last Wednesday’s record peak of $66,930.

Bitcoin has traded in a very volatile pattern since its 2009 inception, though overall it has soared. The bitcoin debate continues to rage among bulls and bears.

Bulls say bitcoin’s use as a medium of exchange in normal commercial transactions will grow.

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Bears point out that few consumers and companies will want to use such an unstable currency.

Bitcoin bulls say the digital asset is a hedge against inflation and a store of value. Bears note that the only thing bitcoin has proved to be so far is a vehicle for speculation.

The bulls also maintain that the currency can protect investors against declines in other markets, like stocks. But the bears note that since bitcoin was created 12 years ago, no sustained drop in stocks has occurred to test that theory.

One bitcoin devotee is controversial tech investor Peter Thiel. He told The Information last week that the U.S. political system isn’t sustainable, and that the skyrocketing price of decentralized bitcoin underscores that point.

"I don't know that you should put all your money into bitcoin at $60,000 a bitcoin right now," he said at gathering of the Federalist Society last week. "But surely the fact that it is at $60,000 is an extremely hopeful sign.”