Bitcoin Price Prediction: Is BTC Irrelevant and Could It Fall to $0? – Dash 2 Trade as an alternative

Bitcoin vor „schwerem Absturz“! Analyst sieht Crash auf unter 30.000 Dollar kommen

After the recent scandals in the crypto market related to the collapse of the crypto exchange FTX, a lot of confidence was lost in the future of digital currencies. The initial currency Bitcoin is also affected. Even if there is no direct link between the criminal business practices of former FTX CEO Sam Bankman-Fried and the Bitcoin network created by the unknown Sathoshi Nakamoto, the consequences for the Bitcoin course cannot be denied.

Not only did Bitcoin quickly drop to as low as $15,500, a more than 77 percent correction to 2021 high prices. No, many investors have lost a lot of money due to the FTX crash and many are wondering if Bitcoin will ever come back.


Bitcoin Crash: BlackRock Invested in FTX

For longtime critics, the bitcoin price crash is fodder to bolster their opinions about the cryptocurrency. But there are still many advocates who believe in a future for the digital currency. A well-known economic expert, who has made headlines in the past for his criticism of the crypto market, is the CEO of the world’s largest asset manager BlackRock. Larry Fink, who manages the fortunes of the US group, which manages assets of about $8 trillion, is said to have made about $24 million in FTX through three funds.

The news seems surprising at first glance. Because only a few years ago, Fink was considered a complete opponent of the crypto market and even described as the “money laundering index”. But Fink’s attitude has now changed and he is more open to the idea behind digital currencies, as the FTX investment shows.

Bitcoin critic now sees opportunities in digital currencies

BlackRock also informed its shareholders about its new attitude towards Bitcoin & Co. a few months ago. According to a letter cited by Finbold, “BlackRock is studying digital currencies, stablecoins and the underlying technologies to understand how they can help us serve our customers. (…) A thoughtfully designed global digital payment system can improve the processing of international transactions and reduce the risk of money laundering and corruption.”

It sounds a little strange. Once debunked as a money laundering index, BlackRock is now promoting cryptocurrencies as an anti-money laundering tool. However, the group made these statements before the fall of FTX. Now Fink seems to be a bit more cautious about cryptocurrencies again. In a recent interview at the New York Times DealBook Summit, he explained that he believes most companies in the crypto industry will no longer exist in the future. However, he made it clear that he did not describe the concept behind Bitcoin as a fundamental failure, but that the underlying technology still has potential.

Harsh criticism from the ECB: Bitcoin on the road to insignificance

However, tough statements about Bitcoin come from the European Central Bank. Here’s how ECB officials are linking the FTX crash to the future of Bitcoin. The FTX incident shows that Bitcoin is unsuitable as a payment instrument and store of value.

ECB representatives Ulrich Bindseil and Jürgen Schaaf continued to write in the blog “Bitcoin’s Last Stand” that Bitcoin’s interim stabilization at $20,000 was only an artificially induced last gasp on the way to insignificance. However, they do not believe in the return of Bitcoin and the recovery of the price. If you follow the thesis, Bitcoin could tend towards 0 dollars in the future instead of reaching new record prices.

Central bank officials also argued that Bitcoin’s design and technical implementation would make transactions complex, slow and expensive. Bitcoin is therefore a dubious form of payment that has little to do with innovation and progress. Therefore, they appealed to those responsible in politics not to recognize Bitcoin as a means of payment. The blog post continues: “Bitcoin does not generate cash flow (like real estate) or dividends (like stocks), cannot be used productively (like commodities) or offers social benefits (like gold). So the Bitcoin market valuation is based on speculation alone.”

For his part, far too many concessions have been made to the crypto market in the past instead of strict regulation of digital assets. The political motivation behind this is the belief that the supposed innovation must be promoted at any cost. Finbold quotes from the blog: “Since bitcoin does not appear to be suitable as a payment system or an investment vehicle, it should not be treated in a regulatory or legitimized way,” they said.

The financial regulator BaFin sees “parasites and crooks” on the market

ECB representatives find support for their harsh criticism. Mark Branson, President of the Federal Financial Supervisory Authority (BaFin), recently made very negative comments and described crypto companies as parasites and crooks. Regarding the FTX crash, these statements seem pretty self-explanatory. However, when connecting to Bitcoin, it should be noted that BTC is not managed by a profit-oriented company like other Altcoins, but is managed decentralized by each user.

Some critics consider Bitcoin’s impact on the traditional financial market to be significant and harmful. The European Securities and Markets Authority (ESMA) recently warned that the increased adoption of cryptocurrencies could have an impact on traditional finance. The ESMA argued that crypto poses multiple risks to financial stability due to its volatility and lack of regulation.

The President of the European Central Bank, Christine Lagarde, also supported the arguments. The expansion of cryptocurrencies is a threat to the conventional banking system.

Brazil wants to legalize crypto

So is buying bitcoin without a future? Amidst all the negative voices about cryptocurrencies in general and bitcoin in particular, there is some good news for the industry. In Brazil, for example, the lower house of Congress has now passed a crypto bill that aims to legalize payments with digital currencies and also enable banks to offer Bitcoin and Co services to their customers. However, the path to the law will only be clear if the Brazilian President also gives his approval.

If that happens, all crypto exchanges and crypto asset managers who want to operate in Brazil will have to obtain a license to do so. Active service providers must also have a physical representative office in Brazil.

A very important passage of the law also states that companies must distinguish between company and customer funds and manage them separately. This would avoid incidents like FTX, where there was clearly an amalgamation of these funds. Companies that do not comply with the new law should be able to be fined or even jailed after a grace period. Provisions for fraud and money laundering should also be laid down in the law.

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