Bitcoin is trading back below $7,000 as I write this Monday as the cryptocurrency continues to see an unwind of the overly exuberant expectations that it set ahead of last Thanksgiving.
Bitcoin futures are struggling to ramp up volumes, while bitcoin ETFs and ETNs seem like a distant memory and government crackdowns around the world on initial coin offerings look to be gaining steam. All in all, the "fear of missing out" is over, as bitcoin seems to be even more of a Veblen good than stocks are.
All of those investors and speculators who bought bitcoin ahead of the new futures, ETFs and ever-more ICOs look like they're stuck, and many will have to consider whether they made good decisions in the first place. It's unclear how many people have purchased crypto using leverage, but that's another risk to consider.
I have been bullish on crypto in the past, and might even be again. But for now, unless something really changes, I won't start looking for bullish crypto opportunities unless bitcoin falls below $5,000.