After the disastrous year 2022 for the cryptocurrency market, many investors withdrew from token trading. Effect? Bitcoin prices are as stable as ever and starting to resemble gold, writes the American Business Insider.
Institutional and individual investors alike turned their backs on the sector in the wake of a nightmarish 2022, when soaring interest rates and the spectacular collapse of high-profile firms like FTX drove the price of bitcoin down.
Bitcoin like gold
While other riskier assets like stocks have rebounded this year, bitcoin is still trading below $30,000 – more than 50 percent above. below the peak of nearly $69,000 in November 2021.
It briefly surged after the world’s largest asset manager, BlackRock, said it wanted to launch an ETF spot tracking the price of the token, but that trend has died down in recent weeks.
Nobody cares about cryptocurrencies
The stabilization of the cryptocurrency meets the forecast of some analysts who expected Bitcoin to become digital gold and its prices to stop surprising and become, at least to some extent, predictable.
To some extent, their vision of low-volatility assets has now come to life – but only because no one really cares about cryptocurrencies anymore.
Bitcoin will drop to zero?
Back in April 2023, Spencer Schiff firmly argued that cryptocurrencies are the future. He said at the time that “Bitcoin is a better choice than gold in the long run.” Apparently, something in him snapped, because he turned his back on the technology quite dramatically.
An investor recently responded to an article titled “Two Causes of the Coming Great Depression.” In his opinion, there will be no crisis and “an inconceivable economic boom awaits us.” He indicated that it would be driven by artificial intelligence, and not, as many thought, cryptocurrencies.
Schiff predicts that Bitcoin “will probably drop to zero in the coming years” and the most popular digital currency “will not have a significant impact on the world.” This is a response to comments that BTC would solve the current problems of the economy.