Since the 25% drop between November 7 and November 9, the bitcoin price has repeatedly challenged the $16,000 resistance. Some detractors may use this to rationalize their pessimistic bias by erroneously believing that a much wider decrease should result from the failure of the FTX exchange.
The Economist, correspondant, Daniel calls the 26th most valuable traded asset with a $322 billion market price, “astonishingly useless and wasteful.”
Furthermore, Knowles claimed that “Bitcoin in particular still has no logical justification, and this is pure Ponzi.
Since most people have such ingrained needs for centralized control over their finances, the success and failure rates of bitcoin exchanges end up serving as the standard for success, while the reality is quite the reverse.
Exchanges are not the same as adoption because bitcoin is a decentralized cryptocurrency and peer-to-peer payment system.
It is important to note that Bitcoin has been attempting to break above than previous seven days ($17,000) indicating that buyers have undoubtedly little interest above that price.
Investors’ worries about contagion risks are the most logical explanation, as was the case with Genesis Block, the most recent victim of FTX to suspend service over liquidity issues.
The company reportedly declared plans to stop trading and shut down operations.
Although the price of bitcoin is currently in a downturn and is unlikely to reverse, it is false to believe that the collapse of a centralized cryptocurrency exchange is the leading cause of this trend or a representation of bitcoin’s actual value.
To determine whether investors still view Bitcoin as risky, let’s examine statistics on crypto derivatives.