Bitcoin plunge to $25,000: Crypto haters gloat, supporters too

The queen of cryptocurrencies has (still) heavily wallowed. Leading as always the rest of the market in its movement. Despite the trillions of dollars lost in the tumble, the show delights critics. Paradoxically, the situation also reinforces a number of followers.

Overwhelming. The price of bitcoin hit the bottom this Thursday at $25,500, a level not seen since December 2020. The most famous cryptocurrency rose, sounded. One BTC is trading at the time of writing these lines against $29,260 (-4% over 24 hours). Laborious obviously, to find the symbolic threshold of $30,000.

At the sight of this fall, its digital cousins ​​also blushed. Ethereum’s ETH loses nearly 10%, Solana blockchain’s SOL shows -13%. It looks like a bloodbath. The metaphor is not excessive, sums of money counting in the trillions actually disappear. And this for several days. The Terra (UST) stablecoin disaster obviously didn’t help.

But this bitcoin tumble was accompanied by a tsunami of comments, hundreds of thousands of tweets flooded Twitter, the Commerce cybercafé, evoking the #cryptocrashthe #cryptowinter (referring to the winter of 2018 which cast a chill over novice investors in digital currencies), capitulation (that other concept from the crypto sphere where everyone would retreat away from virtual tokens). The mainstream media throwing oil on the fire, that of the so-called “first real market crash”. In France in 24 hours, there were 320,000 tweets on the subject.

And around this improvised pile, the detractors began to dance, sing, praise the death of cryptos…

“The value of bitcoin is effectively 0”

This execution in good standing of digital assets has attracted beautiful people. The famous mathematician Nassim Taleb thus took out of his boxes a scientific article which he had published last year to insist on the fact that bitcoin would be worth nothing.

In what he dubbed “black paper”, he applied the methods of quantitative analysis (a branch of statistics supposed to model the probabilities of behavior of markets and financial products) to the pioneer of cryptocurrencies to come to the conclusion that bitcoin was useless. “It is not a currency, nor a store of value, nor a hedge against inflation, nor a bulwark against tyranny and it is not even decentralized,” he repeated.

At the time, the results of his calculations had already earned Nassim Taleb 14,000 insulting tweets and emails. A quantified demonstration on which he relied to affirm that “ Bitcoin is a magnet for psychopaths: it brings together all the conspiracy theorists, the Covid deniers, the antivaxxers, the climate skeptics and, unfortunately, the supporters of Putin. An intervention full of nuance… which overshadows its statistical approach.

The reign of fear?

Faced with anti-crypto factions taking advantage of disastrous market circumstances to do some repairs, the pro-crypto factions have mechanically risen. A kind of online religious war, pitting the savvy skeptics, chanting the risks of rampant speculation and financial crimes, against the flock hoping for a crypto paradise to come.

Other inspired observers thus shared a behaviorist reading of the crypto crash. The degree of risk aversion is said to have reached breaking point for the majority of holders of bitcoin and other digital tokens.

Much like a religion, crypto markets challenge the faith of their followers, and the vast majority have had enough. Most are simply not going to sacrifice what little savings they have left on the altar of crypto. Can you blame them? Who can afford to witness losses of more than 50% and sit there doing nothing? “, psychoanalyzed Richard Tourrin, author of the bestseller “ Cashless “.

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The atmosphere remains anxiety-provoking, if we are to believe the well-named index fear and greed. This barometer of investors in BTC & Co records the longest period of the year in the red zone, having failed for five weeks to extract itself from the state of “extreme fear”.

Who to believe, in the end? Nobody has decoded the price dynamics of cryptos yet. Even if the counters go crazy and even the man in the street worries about “BTC liquidation volumes”, some market participants will relativize the collapse as a standard event on the scale of classic emerging exchanges. A “nascent” crypto market lacks experienced investors.

“Chaos is a ladder”

Never mind, ” bitcoin price doesn’t matter », pleads in an opportune way Bitcoin Magazine. ” Bitcoin’s value proposition as non-confiscable and truly decentralized money is really what matters. Not the hype “. Put another way, the current purge would be healthy for crypto. Speculators are jumping ship, the floor price of BTC reflects its real functionality. And so on for other cryptocurrencies.

The current tremors come from elements ” external speculative and technical elements which, although part of the game, do not call into question its fundamentals », claimed successful crypto entrepreneur Eric Larchevêque. This co-founder of the French wallet giant Ledger and the crypto-bank Coinhouse said he was very confident and recommended in two hashtags to keep his bitcoins (HODL) and to continue the development of the network (BUIDL).

Many crypto veterans are apparently keeping their cool, like Charles Hoskinson, ex-Ethereum programmer and founder of smart contract blockchain Cardano. ” The situation will clear up when the bottom is touched. A long climb will ensue », he philosophized on Twitter, offering to listen to the song ” Chaos is a ladder » taken from the soundtrack of Game Of Thrones.

It is very difficult to make immediate history. (…) But one can wonder if each major catastrophe of the “cryptosphere” intervenes when she empowers herself mentally and philosophically or when she begins to imitate the finance she denounces “, raised with relevance Jacques Favier, French specialist in blockchain and author in particular of the book bitcoin metamorphosis.

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