Bitcoin’s Big Letdown: Is Crypto Cracking Under Pressure?

[redeye]

After the dramatic crash over the past few weeks, also in the crypto market, it seems pretty clear to me that crypto has totally failed at being superior to the traditional financial system.

The idea behind Bitcoin came out of some financial crisis, right? The whole point was to have something of value when the stock markets crash, that’s basically the story as I understand it.

Now we’ve got Trump messing with the global economy, which kind of mirrors the 2008 financial crisis, and Bitcoin clearly isn’t holding up.

Is this a sign of weakness? I mean, gold is going up again these days, sure, some minor dips here and there, but nothing close to how dramatic the drops in Bitcoin and the rest of the crypto market have been.

 

[thomasparra]

I think you misunderstand cryptocurrencies and especially BTC.

From what I understand, speaking with various BTC investors, they believe the value of BTC will always go up as there is limited supply (hardcoded, hence it is impossible for the supply to increase). It is all about adoption. As it increases, its price will automatically increase against fiat governmental currencies. These short term market fluctuations you are currently seeing (both UP and DOWN like right now) are just noise, and do not reflect the long term direction.

Besides, it is still pretty much at an all time high today. In the past 5 years the price of BTC has been lower that the current price maybe 95% of the time?

Gold is historically (i.e. in the past 5000 years) the ultimate reserve of value. Since Ancient Egypt (-3000 before Christ). It is not going to go away just like that.

 

[cherry]

I think you misunderstand cryptocurrencies and especially BTC.

From what I understand, speaking with various BTC investors, they believe the value of BTC will always go up as there is limited supply (hardcoded, hence it is impossible for the supply to increase). It is all about adoption. As it increases, its price will automatically increase against fiat governmental currencies. These short term market fluctuations you are currently seeing (both UP and DOWN like right now) are just noise, and do not reflect the long term direction.

Besides, it is still pretty much at an all time high today. In the past 5 years the price of BTC has been lower that the current price maybe 95% of the time?

Gold is historically (i.e. in the past 5000 years) the ultimate reserve of value. Since Ancient Egypt (-3000 before Christ). It is not going to go away just like that.

BTC was not designed to be an investment that goes up in price. It also wasn't designed to be a digital gold.

 

[thomasparra]

BTC was not designed to be an investment that goes up in price. It also wasn't designed to be a digital gold.

If BTC does not go up in price, it very much likely means that BTC is losing value against fiat currencies, and proves that BTC is not a reserve of value.

 

[JohnnyDoe]

 

[void]

a significant portion of BTC is currently held in paper hands (same applies to all the bulls**t crypto projects, just way bigger portion) - what you see are these hands trembling

just another week like many before

 

[cherry]

View attachment 8944

Technical analysis is like reading tea leaves even at the best of times, but you literally had to warp space & time in order to achieve that trend line.

 

[JohnnyDoe]

Technical analysis is like reading tea leaves even at the best of times, but you literally had to warp space & time in order to achieve that trend line.

Ever heard of log scale?

 

[drysponge]

After the dramatic crash over the past few weeks, also in the crypto market, it seems pretty clear to me that crypto has totally failed at being superior to the traditional financial system.

its not obvious crypto in general has had a dramatic crash (as far as crypto goes), btc has not
idk what being a "superior" financial system is even meant to mean in this context, being worth more?

The idea behind Bitcoin came out of some financial crisis, right? The whole point was to have something of value when the stock markets crash, that’s basically the story as I understand it.

not at all, the point of bitcoin is just the software, the decentralised ledger, any value ascribed to it from correlations with other markets is voodoo

which kind of mirrors the 2008 financial crisis

in what way

 

[Martin Everson]

If people are concerned when they see their investment have a bad day, week or year then investing is probably not for you . If you cannot stomach unrealized losses walk away from investing. You cannot get concerned over every massive pull back or massive gain unless their is some fundamental change affecting what you invested in. With no fundamental change in whatever you have invested in just ignore the movements.

When I say fundamental change I mean pending bankruptcy, technological obsolescence, sanctions, fraud or loss in underlying market share and competitive advantage of the product etc. If none of those are present just ride it out.


P.S We have seen this with both stocks and now crypto that reacting to the market without seeing a fundamental change will result in a realized loss. And as always only invest what you can afford to lose it makes investing less stressful.

 

[JackAlabama]

After the dramatic crash over the past few weeks, also in the crypto market, it seems pretty clear to me that crypto has totally failed at being superior to the traditional financial system.

The idea behind Bitcoin came out of some financial crisis, right? The whole point was to have something of value when the stock markets crash, that’s basically the story as I understand it.

Now we’ve got Trump messing with the global economy, which kind of mirrors the 2008 financial crisis, and Bitcoin clearly isn’t holding up.

Is this a sign of weakness? I mean, gold is going up again these days, sure, some minor dips here and there, but nothing close to how dramatic the drops in Bitcoin and the rest of the crypto market have been.

liquidity pulling out and you dump first whats easiest to liquidate.
Bitcoin has no tarriffs, is global, has no dump orange man as ceo of its territory, no opening hours, no kyc bs, and is censor restiant and you can own it outright if your country and bank goes bankrupt (risk is highly elevated here).

 

[wellington]

Only answer is to print, its following Liquidity air-pocket, followed by Tariffs, but the only answer is print, therefore, down today up another day.

 

[thomasparra]

Technical analysis is like reading tea leaves even at the best of times, but you literally had to warp space & time in order to achieve that trend line.

This is not technical analysis, simply a price chart representing the (exponential) upward trajectory of BTC since inception.

 

[JohnnyDoe]

This is not technical analysis, simply a price chart representing the (exponential) upward trajectory of BTC since inception.

This is not, even remotely, an exponential curve (y=e^x), which would look like this: