We ask ourselves and we take a step back! The week of May 17, 2021 was a long one for Bitcoin (BTC), and especially for bitcoiners who lack faith in the potential of the oldest crypto to enter the 6-figure club.
Preamble before the very heart of the subject
Elon musk opens the game with a speech like the detractors of Bitcoin : mining BTC is too polluting, Bitcoin is simply unworthy according to the billionaire, of a You’re here too green.
The China gives the coup de grace by announcing yet another crackdown on cryptocurrencies. It makes you wonder if the 2 giants have not synchronized, in view of an almost perfect timing to allow the bears to invade the markets. BTC.
The bulls have been running since October 2020, hitting an ATH of over $ 64,700. Is the current crash simply a normal correction in the price of BTC ? The only reliable answer will come from the markets, cryptophiles will have to wait.
We will remember it!
This collapse in the price of BTC brings out 5 facts about the oldest crypto and her cadets.
The first lesson to be learned is that Bitcoin is volatile – a booster shot – as demonstrated by this dizzying drop of 40%.
However, volatility of this magnitude is not new. The course of Bitcoin saw significant corrections in 2013 when it first hit $ 1,000, then in 2018 after the bull run of late 2017, with its price dropping from $ 20,000 to $ 3,000.
The 2nd fact that emerges from this week is blood red for the markets BTC, is the anti-crypto position of the mainstream media, which revel in this fall to always release the same tune: Bitcoin is empty, it is not backed by any physical asset, it is just a scam, etc.
The chronicler of New York Times Paul Krugman stated that Bitcoin had no value, while the star financial journalist of the Wall Street Journal Greg Ip, compare it BTC to Fentanyl – charming. The New Republic applauds the “treason”From Musk to finally “expose cryptocurrency scam“.
The 3th lesson to be learned from the current situation of BTC, is that the latter still has a bad reputation. Who do we thank? Offenders and criminals who use it for their illegal activities.
The Colonial Pipeline recently suffered a cyberattack, and had to pay a ransom in Bitcoin to hackers to allow their activities to return to normal.
The 4th lesson to be learned that exchanges can also be harmful to Bitcoin. Even listed on Nasdaq, Coinbase still allows itself to shutdowns during periods of strong trading activity. Exchange customers would certainly like to tell eye to eye to executives of Coinbase, all the good that he thinks of the quality of the services of the latter.
And we end on a positive note, with a crash that certainly shook the $ 30,000 without being able to break this major support.
The data concerning the flows on the exchanges has also shown that if the retail investors started to liquidate their assets after the blablatting of Musk, the sharp drop in the price of BTC is rather an opportunity for institutional investors who take the opportunity to increase their stock of Bitcoin.
Bitcoin is trading at $ 37,278 at the time of writing. Strongly a healthy recovery of the bullish rally to silence the experts and the anti-crypto media who are jubilant for the moment?
Fashion is good, but blockchain is the future, we agree, right ?! It’s a great opportunity and an evolving sector! On a daily basis, my job is to try to popularize cryptos / blockchains as well as possible, which seem to be far too technical.
The comments and opinions expressed in this article are those of the author alone, and should not be considered as investment advice. Do your own research before making any investment decisions.