The highest Bitcoin this year was around $47,000. Today it is around $30.000. Nevertheless, experts say that the most likely scenario is that the price of Bitcoin will climb to $100.000 by the end of the year, even if it tanks as low as $10.000 at some point.
The downward trend is scaring many people, especially those who are justly known as whales. But for the legions of newcomers and late bloomers, an entry point of $10.000 into Bitcoin would be a stroke of incredible luck. Alas, the chances of that happening are low.
This downward trend feels more like a preparation for a roaring summer than the last death throes of cryptocurrencies. Since Bitcoin occupies the role of the U.S Dollar amongst cryptocurrencies, its fate is connected to the whole crypto market, making it extremely important for all 300 million crypto holders.
So, what is happening?
According to Natalie Brunell, journalist, finance commentator, and Bitcoin podcaster “We shouldn’t be surprised.” The government of the US has approved the printing of trillions of dollars (a fifth of all US dollars have been printed in the last year) to cope with the pandemic, adding extreme excess to the system.
According to her, that money had to flow somewhere, and it went into stocks and crypto but also increased the inflation dramatically. In the last few weeks, the US government has initiated measures to combat inflation and reduce the balance sheets.
They have raised interest rates, making it difficult to borrow, so the people are selling their assets, such as stocks and cryptos. Some stocks have even gone down further than Bitcoin. The S&P 500 index, which tracks the stocks of 500 US large companies, has seen a downfall of 20%.
But Brunell adds that although many cryptocurrencies will ultimately collapse, Bitcoin is a whole another deal. It is a technology that is disrupting and slowly revolutionizing the whole financial system. In contrast to fiat money, Bitcoin has a limited supply of 21 million, and until 2140 when all the Bitcoins are mined, each “yield” produces the same amount of bitcoins, no matter the number of miners.
She says that Bitcoin offers stability, and is decoupled from the whims of those in power adding that “No matter the pains in the short term, in the long run, it is going to be a winner.” We couldn’t agree more.
Though not all cryptocurrencies will enjoy the glory of Bitcoin. The scythe of Grimm Reaper has fallen over many shitcoins, stablecoins, and other altcoins, soaking the markets and flooding the streets with blood.
But NOSHIT is still standing.
From what we have observed before, NOSHIT can break out of this downward trend through a number of actions. But the most important of them is fulfilling our glorious mission, exposing scams and making cryptoworld safe for all users. That is why we are working to launch the new version of the NOSHIT checker, a novelty all in its own. In the meantime, we will continue producing content, communicating with and advising our community, and look to the bright days awaiting us just around the corner.
Whatever the journey of other cryptocurrencies, ours is different. They aim for the moon; we aim for Uranus. Our fate is our own.
Hunter S. Shitson
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