Throughout the past week, the first cryptocurrency in the world continued its almost landslide decline. You can try to find very clear reasons for such a movement, but in this article, we will try to look at the whole picture. Recall that in recent months, we have repeatedly said that we expect a powerful drop in the cryptocurrency market. We made this conclusion both in the context of the fall of all risky assets and in the context of bitcoin exclusively. We also recall the two main theses on which our forecasts were based. The first is that the central banks of the world are currently "tightening the screws". The second is that the upward trend in bitcoin has ended, and each completion of the "bullish" trend was accompanied by a drop of 80-90%. You can also recall the fact that bitcoin is not a currency and not a cryptocurrency in the literal sense of the word. If you call sheep manure a "cryptocurrency", it will not correspond to its name. Bitcoin is a useless piece of code that does not carry any specific benefit. The main idea of the cryptocurrency was to create a means of payment, a worldwide equivalent that will displace or compete with fiat money, but at the same time will not depend on central banks and the will of the governments of a particular country. That is, it has to be a decentralized asset that is used for settlements between different persons. In practice, it turned out that the world does not need cryptocurrencies. Why, for example, do you need cryptocurrencies as a means of payment, if ordinary money copes with this "with a bang"?
Someone may say that ordinary money is subject to inflation, depreciation, and the influence of central banks, which can "twist" them in any direction, pursuing their own global goals, without taking into account the interests of ordinary citizens. But what does practice show us again? Only cryptocurrencies are absolutely unstable, which means they simply cannot be used as a means of preserving value or a means of payment. Imagine that you received a salary in bitcoins at the beginning of this month. At the moment, your salary has dropped by 40%. Of course, not all fiat currencies are stable, some of them also show enviable fluctuations in the foreign exchange market. But still, almost everyone has a choice at least in what to store their savings. You can store your money in stable currencies and assets, which at the right moment can be easily and simply transformed into the currencies that you use in everyday life. This whole story with cryptocurrencies and bitcoin does not go away.
Bitcoin is the hype of the 21st century.
Once again, we would like to remind you that most investors use bitcoin exclusively for speculation. Bitcoin is growing - and even grandmothers are discussing its course on benches in residential areas. Bitcoin is falling - and it is being sold since it will no longer be possible to profit from it, which means that no one needs it. That is, bitcoin is a highly volatile, high-risk investment instrument, but not a currency, not a means of preserving value. And then who needs such a tool that does not depend on the will of central banks? That's right, in most cases, only those who want to make money on it, and those who do not want to get into the field of view of law enforcement agencies.
In the 24-hour timeframe, the quotes of the "bitcoin" were fixed below the level of $ 24,350. Thus, the nearest target is now the level of $ 12,426. In principle, bitcoin can now fall to any value, even to zero. It is unlikely that this will happen, of course, but we believe that the rate of 5-10 thousand dollars per coin will become a reality in 2022. This is instead of the $ 100,000 that most "crypto experts" predicted.