Bitcoin’s Fall: Why It’s Only the Beginning

In six months, the fall of bitcoin is such that the BTC has lost half of its value. While cryptocurrency investors usually focus on the short term (intraday trading, or short for a short period), this long-term Bitcoin trend could continue in a sustainable way. In this article, we tell you why this fall in bitcoin could only be the beginning.

Cryptocurrencies retreat with inflation

The war in Ukraine and the disorganization of the world economy linked to Covid-19 have caused shortages and inflation all over the world. The classic reflex of investors, when inflation hits, is to shift their investments to less risky asset classes. This is typically what institutional investors like pension funds do. Thus, the cryptocurrency demand keeps dropping. And, at constant supply, this lowers the price of the main cryptos, and therefore inevitably leads to the fall of Bitcoin.

According to IMF experts, inflation could continue for at least two years, even if the war in Ukraine ends tomorrow. In other words, this factor should weigh negatively on the bitcoin price for the next few years.

Why Bitcoin’s Fall Could Actually Only Be Beginning

Another highlight: the non-regulation of cryptocurrencies in general is more and more debated as the fall of the Luna was unexpected. Thus, the technological bubble that surrounded the universe of the blockchain flew away. In a way, cryptos have been demystified. And therefore, the fall of Bitcoin looks more and more like possible.

Read also Unusual: Vitalik Buterin doubts Ethereum – Hoskinson invites him to join Cardano!

In addition, Ethereum increasingly competes with Bitcoin from a technological point of view. If ETH manages to move to the proof of work to proof of stake, Ethereum could become the crypto queen. And lead to the fall of Bitcoin…

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