The world’s most traded cryptocurrency received strong critics from the European Central Bank. According to the official blogspot, Director General Ulrich Bindseil said Bitcoin is on the road to irrelevance.
Along with the ECB Analyst Jürgen Schaff, Bindseil shared his opinion that the market is currently experiencing BTC’s last stand. Price stabilization of the coin we are seeing today is nothing but an artificially induced last gap before the crucial downside.
The situation would hardly take a positive turn after FTX has gone bust. After the crypto exchange collapsed and filed for bankruptcy leaving millions of investors with enormous losses, the BTC price immediately dropped below $16,000.
On the one hand, the coin managed to reach its 2-year high earlier this day and topped $17,000. On the other hand, it took a lot of effort to struggle and achieve that level. Some experts say the bounce is just a bearish retest. In simpler words it will hardly be sustainable.
Investors are now witnessing probably the most catastrophic situation on the crypto market. Of course, the FTX downfall is the main reason for that. Traders could never believe a crypto exchange once valued $32 billion would ever collapse.
The situation has definitely brought the market down significantly. What’s more, Experts add that Bitcoin is no longer suitable as an asset to invest in. Unlike real estate or equities, cryptocurrency does not generate cash flows. It cannot be used like commodities as well as it does not provide any social benefits to its holders like gold, for example. The crypto market value mainly relies on speculations.
It might be time we looked back at more traditional assets that do deliver real value to investors. Gold is still the number one choice to protect your capital and keep the investment portfolio diversified and safe from market turbulence.