The ups and downs of the Cryptocurrency market are an inevitable part of it. The users and other enthusiasts are willing to know for how long this downfall will continue. There are many ongoing discussions on this topic and you can get more ideas here at Immediate Edge regarding this issue. Many analysts are ready with their explanations and seem to have different views on the topic.
A recent discussion on this concept is that of Anthony Pompliano in his podcast. The discussion of the topic is the on-chain analytics of Bitcoin and their meaning. As the users want to know why the downfall is occurring and how long is it going to continue, the podcast will help with it. But, the downfall is continuing and Bitcoin is in its worst position at the present time.
The Aspect of Waiting And Watching
The condition of Bitcoin is very sensible at the current period. Many companies are exiting this platform by sensing the high amount of losses.
In a very short time, Bitcoin has fallen around 6.56% and it will fall more in the future. During the time of discussion of this project, the trading value of the coin was 25,670 USD. This is the value after the release of the report on US inflation. Whereas, the market cap decreased to 488.4 Billion USD. In the podcast, Anthony used the data published in Blockware Newsletter. This is to help him in reflecting on the true scenario of the discussion about the network. He says that the short-term Cryptocurrency holders are facing a direct crisis. They are experiencing one of the lowest percentages of profit in supply at present. All of these factors are leading to the lowest ratio of the profit and loss of STHs. It is below the neutral level. If taken into account, this is the lowest ratio since the year 2020. MVRV is giving signals about the downfall of this coin as well. It is indicating that the market price is going down than the aggregate realized price.
Warnings By Janet Yellen
Along with the podcast of Anthony, Yellen who is the Secretary of the U.S. Treasury is giving warnings about the coins as well.
She warns all the users who are looking forward to Bitcoin as a good investment alternative for retirement. She is warning her employees as well so that they do not end up with excessive losses. The NY Times took her interview on this concept and she gave all her answers regarding the risk of Bitcoins.
She slams the plan of Fidelity to provide Bitcoin as risky. She says that she will not recommend investing in Bitcoins as an investment for their retirements to anyone. To those who are saving capital to enjoy a safe retirement, investing in Bitcoin should never be an option for them. She considers this investment to be full of risks. She further adds that the laws for taxes are creating opportunities for saving in the tax-advantaged option.
Many bureaucrats and government officials are showing their concerns in this matter. They do not support the excessive usage of Cryptocurrency or other digital assets in every sphere. And, the statements of Yellen may have contributed to the downfall of the asset.
Conclusion
Most digital currencies are going through several ups and downs. Some are showing signs of recovery as well. Despite all of these aspects, the situation of Bitcoin is not going up. It is in a miserable position. It is facing heavy losses with each passing moment.
Though the entire market of digital currencies is going through a huge loss, Bitcoin is facing more of it. Companies are leaving this outlet and it is increasing the concern among the investors. The STHs are suffering major losses and are finding it hard to cope.
Many analysts are of the view that it is not a safe option for investment anymore. If you are thinking of investing it for your retirement, it would be a dangerous thing to do. Because you will face heavy losses. The government disregards its excessive usage in every aspect. Some officials are asking for regulations on these assets. All of these factors are pushing the investors toward a coin.
