• 28 May, 2024
News

Bitcoin Faces New Threats as Dollar Collapses: Will it Survive the Fallout?

The crypto trader  Jason Pizzino, in his recent YouTube video, stated that the US dollar’s collapse poses a new threat to Bitcoin; he added that investors in both crypto and the S&P 500 might not be ready for the potential fallout. The crypto trader also pointed out that Bitcoin has yet to collapse and make new cycle lows, something it has not done throughout the bear market bottoming structure.

The Bitcoin market is showing signs of a bullish reversal, with the S&P 500 facing overhead resistance at 4155, the VIX index below 17, and the NASDAQ having its highest daily close for 2023. Despite some short-term weakness before breaking out of the resistance level, stronger macro bases are forming for longer-term support.

The drying up of liquidity in cryptocurrency markets could mean less supply on the market, leading to panic and higher prices later on. This could indicate a consolidation or reaccumulation period, where investors buy up coins in anticipation of a price increase.

Analysts remain cautiously optimistic about Bitcoin’s future prospects, noting that it has already climbed 65% this year despite crypto woes. The Coinbase newsletter has flagged the rise of Pepecoin and BRC-20 tokens and other developments in the industry. Michael Saylor, the founder of MicroStrategy, believes that a banking meltdown drives smart money to Bitcoin.

However, some experts caution against getting too excited about Bitcoin’s potential gains. They point out that there is no such thing as high fees on Bitcoin and urge investors to make informed decisions before investing in any cryptocurrency.

Overall, the cryptocurrency market is heading toward a bullish reversal in the coming months. Investors should keep an eye on industry developments and ensure they understand all risks associated with investing in cryptocurrencies before making any decisions.

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