Bitcoin - The collapse continues
It has been a difficult week, in a month and a particularly problematic year for the Bitcoin bulls. The cryptocurrency recorded a decline of 6.4% for the current week, of 18.7% during the last month, and of 76.2% for the current year. If we take the highest quotation in reference, the decline is 83.5%.
Quoting Isaac Newton: "what goes up must also go down", nothing has shown this theory is valid better than the cryptocurrency market.
Not long ago, even people like George Soros, in a very different market condition, have publicly announced an interest in investing in the sector. Such statements have been considered, at least by some, as an April Fools.
After all, only a few months ago Soros, along with other leaders in the finance world, criticized Bitcoin and the market in general.
Let us not forget some particularly critical comments from JPMorgan Chase's CEO, Jamie Dimon, while admitting that his daughter had invested in this sector.
The bearish sentiment of yesterday brought the cryptocurrency to its lowest level since last summer, another critical moment in the world of cryptocurrencies, together with the arrival of Bitcoin Cash.
Designed to overthrow the supremacy of Bitcoin, the fork of last month seems to have given the coup de grace to the family of Bitcoin Cash and, the self-proclaimed Bitcoin Cash SV of Satoshi, has not favored a market that desperately needed support , and that he would not have suspected that the current creator of Bitcoin would have induced such a catastrophic event that he would make the adoption of cryptocurrencies as an alternative to legal currency.
The total capitalization of the cryptocurrency market reached a minimum of 101.04 billion dollars during the early hours of this morning, holding on to the 100 billion nails. Although Bitcoin is finding support early this morning, given the current trend, it is hard to imagine that many will enter the market.
Dinah Washington sang: "What difference does one day" ....
Not so long ago, last year, those who had not invested in Bitcoin were there to talk about the ...
If only I had invested a few hundred dollars a few years ago ...
Unfortunately for some the Bitcoin story has become a warning. Losing 83.5% of a few hundred dollars is acceptable, losing 83.5% of a substantial income or of 1 million dollars is not.
The bulls are still arguing, probably on how to resist the siege of the market, and trying to rally troops to reverse the trend, but after the hard blow, investors will think twice before returning willingly in a market in which they saw their virtual millions vanish almost as fast as they had appeared.
While the bears will seize the opportunity to permanently sink the Bitcoin and the entire market, not all hopes are lost.
There is certainly a role for the cryptocurrency market and there is unquestionably a place for blockchain technology and, albeit to a lesser extent, for some alternatives to legal tender. Those of Ripple have shown how effective blockchain technology is applied to the real world.
Unified regulation throughout the G20 and a possible inflow of institutional money, if the SEC approves at least one Bitcoin ETF, is likely to have a positive impact on the world of cryptocurrencies. At the beginning of last year, investors had opposed the idea of regulation and supervision. The market experienced a strong price fluctuation on a weekly basis, and regulators in China, Japan and South Korea had taken measures on trade.
The inversion could be close, providing a real fund for Bitcoin and for the market. The tear would have been a lot easier during this year of suffering, but to be honest, the $ 3,000 Bitcoin is certainly more attractive than the $ 20,000 Bitcoin, especially when considering the level of adoption.
We are not yet in the phase where "the only movement can be upward" and we could see the Bitcoin on the $ 2,000 levels before the bears take a leave and the bulls come back with the wind in the stern.