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Bitcoin is dropping drastically: How far will it go?

Tue 30 Apr 2024 ▪ 3 min of reading ▪ by Evans S.
Event

Over a weekend glance, Bitcoin took a 5.6% dive, landing at an altitude of around $62,500 after toying with $62,243 during the previous week.

Bitcoin chute

The Causes of Bitcoin’s Fall

The sharp drop in Bitcoin isn’t just a stumble. According to the oracles at Crypto Banter, this descent into hell is fueled by a tangible fear: that of the devaluation of the Japanese yen against the US dollar. Who would have thought that the fate of bitcoin would be linked to the currency of an archipelago thousands of kilometers away?

Japan, with its fascination for near-zero interest rates and a debt/GDP ratio, seems to be playing a risky game.

The weakening of the yen is not just another end-of-the-news bulletin: it’s an earthquake shaking the foundations of global liquidity, with shock waves reaching Bitcoin and other cryptos.

And as if that wasn’t enough, all eyes remain on the next Federal Reserve meeting.

The decisions on interest rates could be the finishing strokes on this already chaotic canvas. Analysts, like modern-day augurs, attempt to predict the effects of these policies on our dear Bitcoin.

An Ocean of Speculations and Predictions

Raoul Pal, the Nostradamus of cryptocurrencies, has his own visions. He describes the current situation as a “banana zone,” a term that seems straight out of a cartoon but perfectly illustrates the joyful absurdity of the market.

According to Pal, it is the moment when Ethereum and Solana, like shooting stars, outpace the old sage Bitcoin.

Indeed, Pal preaches for strategic patience, suggesting that the current drop could be a disguised opportunity for those ready to capture cryptos at an advantageous price. Imagine, it’s like finding a 20€ note in an old jacket: an unexpected windfall at a moment of need.

Is the current Bitcoin drop a fleeting correction or the start of a new era of volatility? Between global economic maneuvers and the advice of crypto experts, the future of Bitcoin seems as clear as London fog. However, one thing remains certain: the crypto sphere will never cease to amaze us. Like in a good old action movie, the best advice might be to sit back, enjoy the show, and perhaps grab some popcorn. Meanwhile, the bull run waits.

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Evans S. avatar
Evans S.

Fasciné par le bitcoin depuis 2017, Evariste n'a cessé de se documenter sur le sujet. Si son premier intérêt s'est porté sur le trading, il essaie désormais activement d’appréhender toutes les avancées centrées sur les cryptomonnaies. En tant que rédacteur, il aspire à fournir en permanence un travail de haute qualité qui reflète l'état du secteur dans son ensemble.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.