Bitcoin Plummets to Half Its Value... Has the Autumn of Cryptocurrencies Begun?
The world's most famous cryptocurrency; Bitcoin, has seen a sharp decline from a record level of $126,000 just a few months ago, now dropping to around $68,000, in a development that has raised concerns among investors and widespread questions about its future in financial markets.
* Collapse Not Linked to Events or Scandals
Notably, this significant decline was not the result of a scandal, ban, or any regulatory decision;
The main reason lies in the cessation of the fundamental factor that was driving the price upward: the loss of hope for continued increases and broader acceptance from markets and countries.
According to a "Bloomberg" report, Bitcoin has relied on a simple idea for years: the higher the price, the more new buyers are attracted, and each bullish cycle required larger inflows of money and an increasing number of investors.
* Absence of New Catalysts
The factors that previously supported the currency's rise were linked to regulatory expectations, such as:
• Recognition of the currency by countries led by the United States.
• The possibility of replacing some gold reserves with Bitcoin.
• Development of a legal framework to regulate the market.
Today, the market faces a lack of a new story to stimulate buying, which explains the currency's loss of half its value in just a few months.
* Investor Questions and the Future of the Currency
Investors are trying to explain the decline through several hypotheses, including:
_ Sale of a massive fund's positions in Bitcoin.
_ Fears of the impact of quantum computing on network security.
_ Market stagnation and the absence of new investors.
But analysts confirm that the reality is simpler and harsher:
The market needs a surprising event or a strong catalyst to rise again, otherwise, the journey of the cryptocurrency may enter a long recession phase or change its financial structure.
The most pressing question remains:
Will Bitcoin find a new catalyst to push the price back up, or are we witnessing the beginning of the autumn of cryptocurrencies after years of record highs?
