I've been watching the price of Bitcoin sink like a stone. It went down under $66,000 at the very beginning of February, which is insane considering it was roughly double that or around $127,000 just last year. That’s a BIG crash for a popular crypto like that.
Global economies are unstable right now with wars going on and tech stocks doing poorly and people are freaked out, selling things that look risky and apparently Bitcoin qualifies as a risky asset now. Or maybe it always has,. there's so much uncertainty built up.
Venture capitalists who bought into Bitcoin last year are now pulling out of their positions so they can get cash and be in a safer position than they are now. I totally understand why they need cash, they feel like everything is so up in the air with their business associates and their investments that it’s quite difficult to tell.
They say the reason all these VCs are pulling out is due to speculation that the new leadership of the Federal Reserve will hinder their ability to get low interest loans. When people can’t find money, they don’t buy much crypto, which is logical.
This is a type of crypto winter. Prices have dropped before and they will rise again. But getting through it is so awful. I put a pause on buying Bitcoin last year because of an emergency in my life.
I’m not sure whether or not this time is any different or if I will just wait for the cycle to start over again before going into it. Regardless of what happens I’m sure there are people who are freaking out right now and there are also people who are riding it out. At this point, I don’t think either of them is right. The fact that this market is so unpredictable and it's even harder to see good trades is all that I have been worrying about for the last year.
