The queen of cryptocurrencies has (still) toppled sharply. Leading as always the rest of the market in its movement. Despite the trillions of dollars lost in the tumult, the show delights critics. Paradoxically, the situation also reinforces a number of supporters.
Overwhelming. The price of bitcoin hit the floor this Thursday at $ 25,500, a level not seen since December 2020. The most famous cryptocurrency rose, it read. A BTC is trading at $ 29,260 at the time of writing (-4% over 24 hours). Of course, it is difficult to find the symbolic threshold of $ 30,000.
At the sight of this fall, its digital cousins blushed, too. Ethereum’s ETH loses almost 10%, Solana blockchains SOL shows -13%. It looks like a bloodbath. The metaphor is not exaggerated, sums of money counting in the trillions are actually disappearing. And this for several days. The Terra (UST) stablecoin disaster obviously did not help.
But this bitcoin tumbling was accompanied by a tsunami of comments, hundreds of thousands of tweets flooded Twitter, the Commerce cybercafe, which provoked #cryptocurrencythat #kryptowinter (referring to the winter of 2018, which threw chills over beginners in digital currencies), capitulation (the second concept from the cryptosphere where everyone would pull away from virtual tokens). The mainstream media throwing oil on the fire, that of the so-called “first real market crash”. In France in 24 hours, there were 320,000 tweets on the subject.
And around this impromptu pile, the opponents began to dance, sing, praise the death of the cryptos …
“The value of bitcoin is actually 0”
This performance of digital assets in good reputation has attracted beautiful people. The famous mathematician Nassim Taleb thus took a scientific article out of his boxes, which he had published last year to insist that bitcoin would be worth nothing.
In what he called “black paper”, he applied the methods of quantitative analysis (a branch of statistics that was to model the probability of behavior in markets and financial products) to the pioneer in cryptocurrencies to come to the conclusion that bitcoin was useless. “It is not a currency or a stock of value, nor is it a hedge against inflation or a bulwark against tyranny, and it is not even decentralized,” he reiterated.
By that time, the results of his calculations had already brought in Nassim Taleb 14,000 insulting tweets and emails. A quantified demonstration which he relied on to confirm that “ Bitcoin is a magnet for psychopaths: It brings together all conspiracy theorists, Covid deniers, antivaxers, climate skeptics and unfortunately Putin’s supporters. An intervention full of nuances … which overshadows its statistical approach.
The reign of fear?
Faced with anti-crypto fractions that take advantage of the catastrophic market conditions to perform some repairs, the pro-crypto fractions have mechanically increased. A kind of online religious war that sets up the savvy skeptics sings the risk of violent speculation and economic crime against the herd hoping for a crypto paradise to come.
Other inspired observers thus shared a behaviorist reading of the cryptocurrency. The degree of risk aversion is said to have reached the breaking point for the majority of holders of bitcoin and other digital tokens.
” Much like a religion, crypto markets challenge the faith of their followers, and the vast majority have had enough. Most people simply do not want to sacrifice the small savings they have left on the crypto altar. Can you blame them? Who can afford to witness a loss of more than 50% and sit there and do nothing? “, Psychoanalyst Richard Tourrin, author of the bestseller” Cash free “.
The mood remains anxious if we are to believe the well-named index fear and greed. This barometer for investors in BTC & Co records the longest period of the year in the red zone, as they have not been able to withdraw from the state of “extreme fear” for five weeks.
Who is to be believed in the end? No one has decoded the price dynamics of cryptocurrencies yet. Even if the counters go crazy and even the man on the street worries about “BTC liquidation volumes”, some market participants will relativize the collapse as a standard event on the scale of classic new exchanges. A “budding” crypto market lacks experienced investors.
“Chaos is a ladder”
Forget it, ” the bitcoin price does not matter », Begging duly Bitcoin Magazine. ” Bitcoin’s value proposition as non-confiscable and truly decentralized money is really what matters. Not the hype “. Put another way, the current cleansing would be healthy for crypto. Speculators are jumping ship, the bottom price of BTC reflects its real functionality. And so on for other cryptocurrencies.
The current vibrations come from elements ” external speculative and technical elements which, although part of the game, do not call into question its fundamental principles; », claimed successful crypto-entrepreneur Eric Larchevêque. This co-founder of the French wallet giant Ledger and the crypto bank Coinhouse said he was very confident and recommended in two hashtags to keep his bitcoins (HODL) and continue the development of the network (BUIDL).
Many crypto veterans seem to keep calm, like Charles Hoskinson, former Ethereum programmer and founder of smart contract blockchain Cardano. ” The situation will clear up when the bottom is touched. A long increase will follow », he philosophized on Twitter and offered to listen to the song ” Chaos is a ladder » taken from the soundtrack to Game of Thrones.
“ It is very difficult to make history immediately. (…) But one may wonder if every major disaster in “cryptosphere” intervenes when she strengthens herself mentally and philosophically, or when she begins to imitate the economy she condemns “, Brought up with relevance Jacques Favier, French specialist in blockchain and especially author of the book bitcoin metamorphosis.