June 12, 2022, 7:57 pm EDT
Virtual Currency Becomes Virtual Reality
Once popular cryptocurrency quickly becomes an underdog currency. Bitcoin crashed down from about 68000 value six months ago (November 2021) to 26800 now. It means -60% decline. Indeed, the virtual currency becomes a virtual reality where its value disappears at a speed that is faster than most people are ready to respond to.
However, failure to hold its critical level of 28000 indicates that bitcoin slides to its next basement level 11700.
It would be too early to say 11700 would be its bottom.
In our view, cryptocurrency does not have any real asset to hold. Therefore, it could drop below 11700 without surprise in a short period of time.
In a hyperinflation environment, only tangible assets could hold up their values relatively well like crude oil, food, or precious metals.