The cryptocurrency queen is (still) seriously mired. Leading as always the rest of the market in its movement. Despite trillions of dollars lost in the crash, the show delights critics. Ironically, the position also fosters a number of followers.
overwhelming. Bitcoin bottomed out this Thursday at $25,500, a level not seen since December 2020. The most popular cryptocurrency is surging. One BTC is trading at the time of this writing for $29,260 (-4% in 24 hours). Difficult obviously to find A symbolic threshold of $30,000.
This fall, its digital cousins blushed. Ethereum’s ETH loses nearly 10%, Solana’s SOL blockchain shows -13%. It looks like a bloodbath. The metaphor is not excessive, sums of money counting in the trillions are actually disappearing. And this is for several days. The Terra (UST) stablecoin disaster It obviously didn’t help.
But this bitcoin downturn was accompanied by a tsunami of commentary, as hundreds of thousands of tweets flooded Twitter, the e-commerce café, and sparked outrage. #CryptocrashThe #cryptowinter (referring to the winter of 2018 that threw a harsh response to novice cryptocurrency investors), capitulation (that other concept from the crypto space where everyone backs away from virtual tokens). The mainstream media is throwing oil on the fire, which is called “the first real market crash.” In France in 24 hours, there were 320,000 tweets on this topic.
And around this improvised heap, detractors began to dance, sing and praise the death of cryptocurrency…
Bitcoin effective value 0
This well-placed implementation of digital assets has attracted beautiful people. And so famous mathematician Nassim Taleb pulled out of his boxes a scholarly article he had published last year to insist on the fact that Bitcoin would be worth nothing.
In what he dubbed his “black paper,” he applied the methods of quantitative analysis (a branch of statistics that is supposed to model probabilities for the behavior of markets and financial products) to cryptocurrency pioneers to come to the conclusion that bitcoin is useless. It is not a currency, nor a store of value, nor a hedge against inflation, nor a bulwark against tyranny and It’s not even decentralized repeat.
At the time, the results of his accounts had already earned Nassim Taleb 14,000 insulting tweets and emails. quantitative evidence relied upon to confirm that “ Bitcoin is a magnet for psychopathsIt brings together all the conspiracy theorists, covid-deniers, anti-climatologists, climate skeptics and, unfortunately, Putinists. An intervention full of nuances… that overshadows her statistical approach.
Reign of fear?
In the face of anti-crypto factions taking advantage of disastrous market conditions to make some reforms, pro-crypto factions have mechanically risen. A kind of online religious war, pitting savvy skeptics, chanting the perils of rampant speculation and financial crime, against the herd hoping for a cryptocurrency paradise.
And so other inspired observers shared a behavioral readout of the cryptocurrency crash. The degree of risk aversion is said to have reached a breaking point for the majority of holders of bitcoin and other digital tokens.
” Just like religion, cryptocurrency markets challenge the dogma of their adherents, and the vast majority have had enough. Most of them will not simply sacrifice what little savings they have left on the altar of cryptocurrency. Can you blame them? Who can see losses of over 50% and just sit there doing nothing? », He did a psychological analysis of Richard Turrin, author of the bestselling book ” non-cash ».
The atmosphere is still worrying, if the famous indicator is to be believed Fear and greed. This metric of BTC & Co investors has been in the red for the longest period of the year, after failing for five weeks to extricate itself from a state of “extreme fear.”
Who believes in the end? No one has deciphered the price dynamics of cryptocurrencies yet. Even if the counters go crazy and even the man in the street is wary of “BTC liquidation volumes,” some market participants will make the crash a standard event on the scale of emerging classic exchanges. The “nascent” crypto market lacks experienced investors.
“chaos ladder”
There is nothing wrong, ” Bitcoin price does not matter », He begs at the right time Bitcoin Magazine. ” What really matters is the value proposition of Bitcoin as a truly decentralized and uncorruptable money. Not hype In other words, the current purge will be good for cryptocurrencies. Speculators jump in, and the base price of BTC reflects its real functionality. And so on for other cryptocurrencies.
The current tremors come from the elements. External speculation and technical elements that, although they are part of the game, do not question its fundamentals », Successful cryptocurrency entrepreneur Eric Larchevik claimed. This co-founder of French wallet giant Ledger and crypto bank Coinhouse said he was very confident and recommended in two hashtags to keep his bitcoins (HODL) and further develop the network (BUIDL).
Many crypto veterans seem to be keeping their cool, such as Charles Hoskinson, former Ethereum programmer and founder of the Cardano smart contract blockchain. ” The situation will become clear when you touch the bottom. A long ascent will ensue », Philosophize on Twitter and offer to listen to the song ” Chaos ladder » Taken from the soundtrack to Game of thrones.
“ It is very difficult to make instant history. (…) But one might ask whether all major disasters are from “cryptosphere” She intervenes when she empowers herself mentally and philosophically or when she begins to imitate the finance she denounces », Closely raised Jacques Faviera French blockchain specialist and author of the book Bitcoin conversion.