In our articles, we constantly try to look at bitcoin with the simplest possible look. Bitcoin is currently more of a commodity than a currency in the direct sense of the word. The currency is initially created order to be a means of exchanging goods. It cannot cost more than the goods themselves (with rare exceptions). Therefore, bitcoin is more of a commodity. However, the product is quite specific. In particular, it sometimes shows explosive growth in value and brings fabulous profits to some investors. However, this is its main feature - it becomes very expensive, but in periods. If the US stock market and individual stocks react to the company's financial results, macroeconomics, politics, and other factors, then bitcoin is more dependent on the market's belief or disbelief at this time regarding further growth. Thus, no matter how paradoxical it may sound, the longer bitcoin does not grow, the less demand there is for it. Many investors are used to the fact that bitcoin profits come within a short period, and they are simply not ready to wait for years in the hope that the cryptocurrency will show a new "bullish" trend. Accordingly, investors may start getting rid of bitcoin again in 2022. So far, high inflation around the world keeps it on the surface. Investors believe that the "bitcoin" can still be an effective means of hedging inflation, but as soon as it starts to decline, bitcoin will lose another growth factor.
No less important for the "bitcoin" is such a thing as popularity at a certain point in time. In its strongest areas of growth, the popularity of "digital gold" was off the scale, and you could even find out the cryptocurrency rate from grandmothers sitting on a bench at any house. However, at the moment Google Trends reports that the number of requests for cryptocurrencies is at a low level. Simply put, the world is not particularly interested in bitcoin right now. And if it is not interesting, then the number of new owners is not growing.
Thus, everything is going to the fact inflation will begin to decline in the United States, the money supply will shrink, and the profitability of safe assets will grow. This is an ideal environment for the fall of cryptocurrencies. Of course, not only the States that should be paid attention to. There are many other countries where inflation will continue to remain high and the money supply will not decrease. That's just the focus is usually on the big players. China has banned cryptocurrencies, the situation in the States will not contribute to the growth of the "bitcoin", and the European Union is on the verge of a food and energy crisis, it is not up to bitcoin right now. From our point of view, in 2022, the fall of the first cryptocurrency in the world will continue.
