By the end of the week, Bitcoin had fallen to $38,200. This is a six-month record low. Following Bitcoin, the cryptocurrency market plummeted as well. Bitcoin's share of cryptocurrency payments has plunged by around 35% since last year.
More and more investors are closing their positions on cryptocurrency exchanges or choosing less volatile assets instead of Bitcoin.
There have been red flags since last year. At that time, Bitcoin's use dropped from 92% to 65%. Bitcoin is no longer the magic bullet for inflation and the federal government.
Many investors choose Stablecoin as it is not as volatile as Bitcoin and cannot lose 20-30% per day. There are no new investors and no new injections into Bitcoin yet because there is panic and fear in the market. The fear and greed index is very low.
Due to the fact that Russia, being the third mining country in the world, may ban bitcoin and mining, digital gold has fallen to $38,200.
If Bitcoin fails to consolidate in this narrow range, the collapse will continue and Bitcoin will fall even lower, breaking more support levels.
The bear market can be longer-term because of the massive protests in Kazakhstan, the possible ban in Russia, and tight environmental regulation that may be seen in the US this year.
Meanwhile, all the predictions that suggested Bitcoin would rise up to $100,000 or even $200,000 are already meaningless.
