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The Bitcoin Correction - Just Part of a Wider Slump....?

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@revisesociology
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I imagine you had a nasty red surprise this morning when you checked the Hive and then Bitcoin Price - Ouch!

Yes, another severe correction downward.

HOWEVER, I prefer to zoom out at times like these and focus on the longer term trend....

I remember a few months back saying I'd be happy with BTC level at $30K, and while $60K was nicer, $30K isn't too bad either.

And this time I think the BTC correction is just part of a wider downtrend, a reaction to the inflation caused the chosen social response to the Pandemic, an in Europe, the energy crises, possibly the increasing tension between NATO and Russia over Ukraine.

All of the above result in supply chain disruption, increasing costs, and thus very likely decreased consumption in the coming months and possibly years as people simply don't have the money to consume!

And hence stock prices go down, these being partly based on the potential for future returns. This time around Bitcoin seems to have declined with the tech stock sell off.

And given that Bitcoin has been being increasingly bought by institutions, as part of a wider investment portfolio, seen as 'high risk' in their eyes, it makes sense that this is the first thing to get dumped when you see an economic slump on the horizon.

Possibly this is 'last in, first out' going on - weak hands?!?

But I still ask 'why Bitcoin'.....?

I know that the alts generally follow BTC down,

like Hive, but when BTC slumps I always ask myself 'why BTC'...?

I mean especially in the era of NFTs like Splinterlands assets which have a clear use case, and incidentally have held up very well with the BTC Crash.

Or even Hive, we may all be 30% poorer now compared to a few weeks ago in dollar terms, but at least that has a use case too!

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