When the US dollar definitively loses its status as the reserve currency of the world there is no great competitor to replace it.
Bitcoin has features which make it uniquely appropriate for this: namely that no other currency is so resistant to debasement.
I anticipate it will recover and set new records.
Wall Street is not doing well at the moment[1] and is probably calling on it's hedges[2] - including Bitcoin - to cover losses.
Bitcoin goes up, bitcoin goes down, you can't explain that.
Seriously though, bitcoin has always been highly volatile, is this really a story?
It's a speculative instrument useful for enabling criminal activity and not much else.
It will be back up next week
As long as the government continues to devalue the dollar, crypto is in a great position.
Speculating out several orders:
Once the new head of the fed takes over and pushes interest rate cuts per his bosses request, borrowing will get cheaper, money will flow and inflation will go up. The dollar will devalue. Congress will never stop going into a deficit with their spending bills as no one votes for austerity, requiring more and more money to be printed. Wages will not keep up with inflation as it skyrockets and taxes take an ever greater chunk of the workers check.
If things continue as they have been, at some point, the dollar will not be a good value proposition for average normal people to use for day to day exchange, and they will start to look into other options to maintain economic normalcy.
Crypto currency is poised to take over.
If you take speculation to even further orders beyond that... once people start to switch over to crypto en masse, the government will then start to track people's crypto usage to recoup it's tax money that it's losing.
Then privacy crypto currency will be poised to take over that.
Another interesting monkey wrench. The dollar is somewhat bastioned from inflation by being the worlds reserve currency. But imagine if the world lost faith in dollar and started to use something else like a EU or BRICS currency. I wonder how that would affect the dollars value?
I don't think the BTC market is worth playing unless you are good at knowing how the whales (who control it in its entirety) operate.
Everyone already knows BTC will be back at 110 in a few months. It might dip to 30 first, who the hell knows.
BlackRock & Wall Street funds/banks pumped Bitcoin for the past couple of years. They slowly started dumping 2 months ago, before the Epstein emails. I'm sure they had no insider information and it's a total coincidence. /s
Russia-Ukraine war is being wound down and Russian sanctions will be lifted probably in the next 1-2 months. Crypto is the financial tissue that connects sanctioned entities to non-sanctioned Western banks. What you are seeing is Russians and other sanctioned entities dumping their coins since they won't be needed soon.
The Bitcoin ecosystem, folks looking at it as an investment / get rich pathway, all the scam / poorly run companies, straight up crime ... really seems to fly in the face of the whitepaper and presumed ethos.