The bitcoin price is currently $21 974 (£18,000). What’s going on with Bitcoin? It’s dropped 25% in the last five days alone happening. What’s happening with Bitcoin? This is the lowest value in the previous eight months. Its Na November high of nearly $70,000 feels like a lifetime ago.
Why?
This, according to experts, is due to the worldwide climate. Things aren’t looking good in the crypto world alone.
The economy is on the verge of a recession, inflation is skyrocketing, interest rates are rising, and living costs are rising. Stock markets are also swaying, with the S& P 500 in the United States is now in a bear market (down 20 percent from its recent high).
As a result, even the most affluent investors have less discretion over their funds. And many ordinary investors – not wealthy hedge fund managers or corporations, but regular people like you and me – have less money to invest.
In these uncertain times, many people believe that investing in something as volatile and unpredictable as cryptocurrencies is a risk too considerable.
Because it is unregulated and unprotected by financial regulators, if you put your savings in it and it loses value or access to your crypto wallet, your money is lost.
Why Now?
Last month, two lesser-known but significant coins went bankrupt, shattering investor faith in the industry. As a result, more people are opting to sell their homes.
Because Bitcoin’s value is tied to its appeal, the more individuals who sell it, the less it’s worth. As a result, more people are selling since they can see the value dropping, and the cycle continues.
As reported by BBC, Bitcoin, unlike other more traditional assets, has no intrinsic worth – no premises and mortar, revenue stream, or underlying business, according to FT markets editor Katie Martin.
“The price is solely and completely whatever people are willing to pay you for it,” she explains.
“That’s when it gets scary for people because there’s no floor if enough people head for the escape.” Nothing prevents it from trading at $10,000 tomorrow if enough individuals quit or are compelled to do so.
