Evaluating the general conditions of Bitcoin and cryptocurrencies we are in a fairly strong phase, because it has decreased its price compared to its last all-time high that reaches almost 70% less.
We are facing the impact of a set of macroeconomic factors that are causing the behavior of the digital market to go hand in hand with what even stocks and the traditional financial market are experiencing.. You can visit trustpedia.io/es/ for your successful stock investment.
The main question is whether we are facing a crypto crisis where what is evident is the decrease in its price or is it a global economic crisis that affects cryptocurrencies and the general financial market..
It is important to note that the bullish and bearish phases experienced by cryptocurrencies are usually cyclical, that is, they always last the same time., in the case of bullish cycle its average duration is 150 weeks, while the bass player covers a range of 50 weeks.
Although it is in a not very beneficial phase, many economies worldwide are adopting them and most of them are emerging economies waiting for this bearish cycle is fulfilled in order to recover in a relevant way.
The cryptocurrency crisis
Taking as a reference the history of Bitcoin prices and its critical stages, it has shown that it has the ability to recover even in stages that might be tense enough., but, better still people have assumed digital currencies as a source of savings.
Currently, economic growth in world powers such as the United States and some countries in Europe are declining in proportion to rising inflation., that is why revenues decrease, needs increase and purchasing power becomes limited.
Although the pandemic crisis for cryptocurrencies proved beneficial in the case of the crisis caused by the war, it has proven quite the opposite., where the risks are asserted after the economic and financial complications of the various geopolitical blocs, where legal tender is being affected and extraordinary measures are generated in short periods of time.
The population is the most affected after all these limitations and failures in the economy and finances, that is why they resort to cryptocurrency investments, where even in bearish phases they could obtain benefits in the case of executing trading operations.
The role of Bitcoin in the face of the crisis
Bitcoin is a decentralized digital currency, so its link with the crisis has no effect, consequently that digital currencies are not controlled by any institution or government, the falls we have seen during the 2022 are produced by the macroeconomic aspects of the traditional economy.
Being a highly speculative investment tool, Bitcoin is usually one of the most popular digital assets when investing savings in an asset that could be considered a store of value..
Bitcoin in the current crisis between Ukraine and Russia has demonstrated the versatility it possesses and the uses it can have to solve economic and financial problems of countries without needing to be controlled by a third party..
It is necessary that Bitcoin overcomes its bearish stage in order to continue with the course of the phases of displacement of supply and demand reaching capitalization and distribution in a normal and fluid way..
Bitcoin's Attractions as an Economic Lifeline
Cryptocurrencies have demonstrated during the last crises their potential as a financial resource of great support for companies and individuals since in the case of acquiring these assets they can leave them stored acquiring value.
One of the best strategies is usually the storage of cryptocurrencies, since it does not require more effort, much less the emotional aspect is handled as in daily trading.
The valuation of Bitcoin is usually the highest among cryptocurrencies which indicates that at the time of making profits they will be quite productive.
This digital asset tends to have greater use in emerging countries such as Latin America, where there is a high young population and because incomes are lower people are forced to look for a different investment strategy.
On the other hand the execution time of the transactions are quite short and the commissions are also low, as international transfers are quite expensive.
Conclution
Digital currencies and bitcoin are usually a help if you can say in some way for economies in a decentralized way to recover and find a way to capitalize effectively..
This is the main reason why many countries are beginning to be interested and through laws ensure a responsible use of them.
