The Bitcoin Price Is About to Go Deep Underwater

NEW YORK (InsideBitcoins) — The price of bitcoin is approaching new territory: deep, deep underwater. Investors will see year-over-year prices lower — much lower — than 12 months ago. How that will affect the already flimsy foundation that the cryptocurrency’s price is built upon will likely be a topic of much discussion.

One year ago, the price of bitcoin was on a mad dash straight uphill, closing November 11, 2013 about where it is today: in the $350s. Then the flight higher began. A week later it was approaching $550. Another week and it had soared to over $1,000, reaching nearly $1,200 before beginning its December descent. By mid-month, bitcoin was back into the mid-$500 range.

Without another run, year-over-year investors are going to see brackets around their returns, an unfamiliar sight.

The experts have weighed in on where they believe the price is going. Generally, optimism still rules. But in the meantime, bitcoin believers may be thinking about long-term capital losses at tax time, rather than short-term capital gains.