Bitcoin: Why do investors continue to bet on this currency despite its recent fall?

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On the weekend of June 18, Bitcoin, the most famous cryptocurrency, recorded a phenomenal drop in value, even breaking its 2017 record. Enough to largely torment cryptocurrency investors.

 

The symbolic floor of $20,000 was crossed late last week. It had been a year and a half, since Bitcoin gained fame, that this had not happened.

 

Indeed, the cryptocurrency’s price dropped to a value of $17,599 on Saturday, June 18, beating its December 18, 2017 record of $19,511 by a landslide.

 

In just six months – since January 2022, the value of Bitcoin has plummeted from over 40,000 euros to less than 20,000 euros. In total, Bitcoin has lost 53% of its value in a very short time: unheard of.

 

However, this decline does not seem to be a coincidence according to investors. The behavior of the holders of this currency would have largely played on the fall in value of Bitcoin since the beginning of the year. Seeing the value of Bitcoin fall, those who owned the currency went into a panic and frenzy to sell their virtual tokens because of fear of losing even more money if the value of the currency fell further.

 

Ambiguous investors discourse

 

Although Bitcoin has convinced several luxury houses to invest in its currency, such as Balenciaga and Off-White, which now accept crypto payments, this recent decline does not bode well. – does not bode well.

 

An impalpable and extremely volatile currency, the value of Bitcoin can rise and fall in a fraction of a second. It is therefore complicated to predict a future rise or fall of this currency. However, some investors or personalities invested in this field remain confident while others express their concern.

 

For Alexandre Stachtenko, director of blockchain and cryptocurrencies at the consulting firm KPMG, it is necessary to keep reason. “There are crises and volatility, this is not the first time. There were some in 2013, 2018, 2022. As prices are higher, the impact seems much stronger. […] You have to look at the fundamentals, they are good. There is real adoption, both in terms of individuals and businesses. Bitcoin is young, it’s a risky technology market. The crash is a way to clean up the sector. Some cryptos will disappear. But bitcoin will stay,” he said in this regard. According to him, the almost worldwide exponential inflation, caused in part by the Russian-Ukrainian war, would then be one of the other reasons for the fall of Bitcoin.

 

Another personality invested in this crypto-currency market also expressed confidence in Bitcoin: the president of El Salvador, Nayib Bukele. The man who made Bitcoin the second official currency of his country says that Bitcoin remains a safe and reliable cryptocurrency whose value will soon increase significantly.

 

I see that some people are worried about the price of bitcoin in the market. My advice: stop looking at the chart and enjoy life. If you have invested in bitcoin, your investment is safe and its value will increase tremendously after the bear market. Patience is the key,”  he said.

 

Same speech for the Minister of Finance of this country, Alejandro Zelaya : “When they say that the fiscal risk in El Salvador due to bitcoin is very high, the only thing it causes is to make me laugh and I think that any serious economist should do the same, because it is really an extremely superficial analysis and they only speak out of ignorance,” he added from his side.

 

However, not everyone has the same confidence in Bitcoin. Clement Vannier, an investor in crypto-currencies, warned of the volatility of this currency and all cryptos in general: “Now, crypto-currencies, you have to be careful […] you invest money that you have, that you earn by working and you can lose it all in one go” .

 

Christine Lagarde, President of the European Central Bank, sounded the same warning on May 23 in the same way as Vannier: “My very humble assessment is that it is worthless. It’s not based on anything, there are no underlying assets to act as a security anchor,” she said.

 

Nevertheless, even though the Bitcoin price remains volatile and there is no way to bet on whether it will go down or up in value, the Bitcoin has been on the rise since last weekend. Its value quickly rose to $21,600 yesterday, Tuesday 21 June.

 

It’s hard to know what to do about investing in Bitcoin: continue to trust and hope or give up? For the moment, it remains to analyze the price of its value and be patient. To be continued…

 

 

Read also > GUCCI NOW ACCEPTS CRYPTO-CURRENCY IN SOME OF ITS US SHOPS

 

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On the weekend of June 18, Bitcoin, the most famous cryptocurrency, recorded a phenomenal drop in value, even breaking its 2017 record. Enough to largely torment cryptocurrency investors.

 

The symbolic floor of $20,000 was crossed late last week. It had been a year and a half, since Bitcoin gained fame, that this had not happened.

 

Indeed, the cryptocurrency’s price dropped to a value of $17,599 on Saturday, June 18, beating its December 18, 2017 record of $19,511 by a landslide.

 

In just six months – since January 2022, the value of Bitcoin has plummeted from over 40,000 euros to less than 20,000 euros. In total, Bitcoin has lost 53% of its value in a very short time: unheard of.

 

However, this decline does not seem to be a coincidence according to investors. The behavior of the holders of this currency would have largely played on the fall in value of Bitcoin since the beginning of the year.

 

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On the weekend of June 18, Bitcoin, the most famous cryptocurrency, recorded a phenomenal drop in value, even breaking its 2017 record. Enough to largely torment cryptocurrency investors.

 

The symbolic floor of $20,000 was crossed late last week. It had been a year and a half, since Bitcoin gained fame, that this had not happened.

 

Indeed, the cryptocurrency’s price dropped to a value of $17,599 on Saturday, June 18, beating its December 18, 2017 record of $19,511 by a landslide.

 

In just six months – since January 2022, the value of Bitcoin has plummeted from over 40,000 euros to less than 20,000 euros. In total, Bitcoin has lost 53% of its value in a very short time: unheard of.

 

However, this decline does not seem to be a coincidence according to investors. The behavior of the holders of this currency would have largely played on the fall in value of Bitcoin since the beginning of the year.

 

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Thanks to its extensive knowledge of these sectors, the Luxus + editorial team deciphers for its readers the main economic and technological stakes in fashion, watchmaking, jewelry, gastronomy, perfumes and cosmetics, hotels, and prestigious real estate.

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