- The BTC/USD has been all over the place during the trading session on Monday, as we continue to see a lot of rumors around the FTX fallout hit the wires.
- Quite frankly, I don’t think anything matters at this point other than the fact that the market is dropping.
- I do think the Bitcoin goes lower, and in fact think it goes much lower at this point. Confidence in crypto has been absolutely destroyed by one Ponzi scheme after another.
When you have a very corrupt industry like crypto, a lot of bad players will take advantage of it. However, for the longer-term staying power of crypto, this might be the watershed moment where things change for the long term. These short-term bubbles that drive mania into these markets makes crypto a very bad place to be. Think of it this way: if you own a business, how could you ever accept crypto as payment, when it can change value as much as is 10% in a single day? Crypto simply has no real-world use until it stabilizes. Yes, it’s all about getting in on the ground floor with an investment like this, I totally get that. However, there’s a real argument to be made that crypto never survives.
BTC Likely to Keep Losing Ground
With Central Bank Digital Currencies coming down the road, you can bet your bottom dollar that most of the population will simply fall into line and use those. Don’t believe me? Look at what happened during the pandemic. Because of this, I think that Bitcoin could have used down the road, but I never believe that it’s going to be anything close to mainstream. It certainly won’t be in developed countries, so the idea of Bitcoin being worth $100,000 or even $1 million is ludicrous.
This brings me to my next point, the fact that Bitcoin is measured in terms of fiat should tell you everything. People were buying Bitcoin to make more US dollars. Think about that for a minute, it’s quite telling. As for this market, I believe that the $18,000 level has now offered a bit of a ceiling for the market, and I think we are probably going down to $12,000 over the next several weeks. I just don’t see anything positive coming out of this market anytime soon.
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