It does not seem that the situation of Bitcoin will improve in the short or medium term. During the last months we have seen how it has received several setbacks, and although it has recovered well from more than one of them, the outlook is undeniably negative. This, of course, cannot be translated into any certainty either, if we have learned anything in all this time, it is that the behavior of the cryptocurrency market is somewhat different from that shown by other types of investments.
Now at this point it is important to establish the difference between the two main types of investors in Bitcoin and other types of cryptocurrencies. On the one hand we have the supporters and proselytizers of crypto assets (cryptocurrencies, NFTs, etc.), who in many cases almost seem like evangelists of crypto, and on the other hand investors with a more general profile, who what they do is always look for the highest possible return, regardless of what you are investing in.
Thus, while the behavior of the former is based more on the firm belief in Bitcoin and other cryptoactives, than in the evaluation, let’s say standard, carried out by the latter. And although an important part of the existing bitcoins today is in the hands of the former, many others have already fallen into the hands of investors who are looking for yield, rather than confirmation of their personal beliefs. And if the “standard” investors have doubts, these sooner or later end up translating into declines in the price.
And this is, as we read in Arstechnica, what is currently happening, with investors dumping crypto assets, which has pushed Bitcoin to its lowest price in the last six months. And it is that to the volatility that has turned out to be inherent in cryptocurrencies, there is a context in which the regulations established by more and more countries blur that future in which many imagined a currency with a global reach.
As we told you a few weeks ago, there are already 51 countries that, completely or de facto, have closed their markets to Bitcoin and other cryptocurrencies, and this seems to be a trend that more countries could be added in the short and medium term. And those in which it is not going to be prohibited, at least for now, could establish regulations that economically penalize investments, not to mention other regulations, such as the one recently approved in Spain, which intends to limit its promotion.
Thus, as we already told you, some analysts suggest that Bitcoin could close 2022 with its value below 20,000 dollars, very far from some predictions such as that of the ill-fated John McAfee, who at the time stated that his price would reach one million dollars (although it is fair to admit that he later retracted it, calling it nonsense.
It seems, therefore, that 2022 may be a critical year for Bitcoin, a year in which the most popular crypto will have to face a fairly hostile environment, to show if it really is everything that its defenders claim or, on the contrary, it is just one more bubble like so many that we have already known throughout of history
Bitcoin Entry: Investor Flight? It is original from MuyComputer