Bitcoin's recent surge of nearly 170%, reaching $43,970, stands in stark contrast to the European Central Bank's (ECB) warning in late 2022 about the cryptocurrency's impending "irrelevance." Crypto advocate Eric Wall and others noted on December 4 that Bitcoin's price has defied economists' predictions.

The ECB's skepticism towards Bitcoin was evident in its November 30, 2022 blog post, which prematurely declared the cryptocurrency's demise when it was trading at just $16,400. Despite the ECB's assertion that Bitcoin's value had peaked in November 2021 and was heading toward irrelevance, the cryptocurrency experienced a resurgence, adding 70% in Q1, 2023 alone.

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BTC/EUR 1-week chart. Source: TradingView

A year after the ECB's premature proclamation, Bitcoin is currently valued at $43,800, representing a 166% increase from the level at which the ECB sounded the alarm. Commenting on this ironic turn of events, Philip Swift, creator of Look Into Bitcoin, expressed satisfaction, while Alex Thorn, head of firmwide research at Galaxy, questioned the ECB's credibility, wondering what else they might be wrong about.

The ECB, known for its skepticism towards Bitcoin, has faced embarrassment due to its officials' and the bank's market analyses. Even ECB Chief Christine Lagarde, in a recent statement, revealed her low opinion of cryptocurrencies and shared her son's financial loss from investing in crypto against her advice. Meanwhile, the ECB is gearing up for the potential introduction of a central bank digital currency (CBDC), facing scrutiny for its implications on transaction control, as acknowledged by Lagarde.