- Bitcoin continues to look very weak and vulnerable at the moment.
BTC/USD
Bitcoin has plunged enough during the trading session on Tuesday to break through the crucial support that was the last vestiges of hope for Bitcoin. It is because of this, that I think Bitcoin has much further to drop, and at this point in time it would not be surprising at all to see Bitcoin reach somewhere near the $63,000 level.
This market has been relentlessly sold off since October, and quite frankly, I think there are some major concerns here when it comes to Bitcoin that may or may not be addressed shortly. The first one of course is going to be the fact that we have the very real question of what's it even for now? Because quite frankly, Bitcoin is supposedly going to be many different things, but it's yet to actually be those.
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For example, it was supposed to be digital gold in a world of chaos. Well, as you know, gold has been racing to the upside and Bitcoin has completely done the inverse. You could make an argument that perhaps this was a toy for Wall Street to start selling to people and then dumping it at the top of the range. There are a lot of people that believe that.
A Solution Looking for a Problem
But quite frankly, I think the biggest problem for Bitcoin is the fact that it's just not being used. There is no use for Bitcoin at the moment, at least nothing that validates paying $125,000 for a coin. Don't get me wrong, I'm not saying Bitcoin is going to zero. I think there's far too many interests online at the moment in this market, but it clearly is going much lower.
What we really need with Bitcoin is that absolutely must-have type of application that uses it. Then, maybe Bitcoin has a chance to perform the way so many of the believers have in the past. As things stand right now, it’s basically a solution to look for a problem.
There are a couple of exceptions and I'm sure someone in the comments will make those exceptions, but the reality is 99% of the population in the world has absolutely no use for Bitcoin and I think it's starting to be priced in. Again, they need to find a reason to make it valuable.
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