Home Tech & Gadgets Cryptographic earthquake: high-stakes bets that Bitcoin is collapsing. The crypto market...

Cryptographic earthquake: high-stakes bets that Bitcoin is collapsing. The crypto market is collapsing

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At the highest level, economic analysts are betting that the fate of Bitcoin is sealed. Moreover, they say, cryptocurrencies in general will collapse in the next period.

The cryptocurrency market once again demonstrates how volatile it can be and, above all, how interconnected it is to traditional financial markets or geopolitical events.

What is happening now with the big cryptocurrencies is a natural reaction in the world of investments. More specifically, investors are afraid of unsafe assets and sell them en masse. Concerns about high inflation and rising interest rates are causing investors to be extremely cautious and to calculate coldly, carefully, absolutely every move. Financial markets now abound with restraint and waiting. In this context, risk tolerance is almost nil. Nobody takes risks, which is why, if money is invested, people prefer to do it in an asset as stable as possible, such as, as an idea, gold.

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Bitcoin is already receiving shocks, but I still haven’t seen what’s worse

The cryptocurrency managed to return to the Asian session and traded at $ 30,300 at 0623 GMT, up 5%, after falling to about $ 25,400, the lowest level in 16 months.

“I don’t think the worst is over,” said Scottie Siu, chief investment officer at Axion Global Asset Management, a Hong Kong-based company that manages a crypto-index fund.

“I think there are more disadvantages in the coming days. I think that what we have to see is that the open interest is collapsing much more, so the speculators are really out of the schemes and then I think that the market will stabilize “, the expert added.

Bitcoin volatility warnings have been circulating regularly, including by economist who predicted the 2008 economic crisis, Nouriel Roubini. He claims that the intrinsic value of Bitcoin is zero or even “minus” and that it is just a bubble of soap that will break.

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According to him, it is only a matter of time before this happens, but people will lose their money. Others support investing in cryptocurrencies, but rationally urge people not to bet on cryptocurrencies more than they can afford to lose.

There are, of course, analysts who strongly believe in these assets, but they do not take into account the following dangers that cryptocurrencies entail:

– wasting huge amounts of energy for mining;
-volatility;
-lack of legal regulations;
-use in illegal transactions and the high degree of difficulty involved in tracking money.

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