Bitcoin has come under a lot of pressure recently and is threatening to drop below the $ 20,000 mark. Yesterday, cryptocurrency exchange Coinbase announced plans to lay off 18% of its workforce. Furthermore, the peer-to-peer platform for cryptocurrencies, Celsius, has stopped paying its customers – there have also been short-term problems on Binance. So Bitcoin isn’t digital gold after all? All of this is eroding investor confidence and is a major problem for the cryptocurrency industry. This makes it increasingly likely that supervisors will issue regulations and thus put an end to the previous “wild west” with cryptocurrencies.
Bitcoin under pressure: why?
But why is Bitcoin falling, why are players in this industry like Celsius getting into trouble? If you look at the price movements of cryptocurrencies, you can see parabolic increases with the start of ultra-lax central bank monetary policy in reaction to the collapse of the krona. This brought a lot of liquidity into the markets, as well as helicopter checks to the US: a lot of money was then invested in Bitcoin and Co. But with the change in monetary policy – monetary climate change – now the opposite is happening: liquidity comes sucked into the system. So what used to be on the rise is now tending to decline.
It is also surprising that Bitcoin is falling into “fiat currency” despite extremely high inflation, so the mantra that this decentralized currency will act as a hedge from inflation also appears to be collapsing.
pros and cons
Is Bitcoin still climbing towards 100,000 or have we already seen an all-time high of over $ 68,000 in the fall of last year? Is Bitcoin also the largest bubble in financial history with an intermediate rise of a whopping 1600%?
Andre Stagge, a former fund manager, believes that Bitcoin cannot reach a new all-time high again. On the other hand, Roman Reher, alias “Der Blocktrainer”, sees it differently: he runs the most popular YouTube channel in this sector and is a true supporter of Bitcoin, who every so often utters real “incendiary religious speeches” in defense of his favorite possessions. However, as I have experienced firsthand in an interview with him, he is always open to talking and thinking. He also shows this open-mindedness in this rather confrontational, but nonetheless respectful conversation with Andre Stagge:
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