Bitcoin slowly recovered the part of his price he lost during the price correction. He seems to be on the brink of breaking the price level of 7000. And yet he fails. Let’s take a look at the three factors that probably push the price of Bitcoin down.
-Fear and uncertainty in world markets
Breaking the price level of $ 7,000 is failing primarily because the whole world is uncertain. Coronavirus penetrates from east to west and strongly affects economic and financial centers such as London and New York. Stock exchanges stop and banks close branches. In such a situation, no one is simply interested in investing in a risky asset that does not have a century of history.
-Cash needed in case of problems
Cash will probably always be payable, which many people bet on. However, this is the most dangerous factor of all. The famous Game Theory describes a situation called the Nash equilibrium. That is, if a large number of people decide to panic and withdraw money from the bank, others will follow them until the banks are without money. Then comes the Bitcoin era. Until then, it is worth simply holding a fiat under the pillow.
-Young loses money
Most young adults under 35 years invest in cryptocurrencies. They may not be interested in the last price correction, but their fragile financial situation does. Young people may not have sufficient financial resources and will want to support the family from the investments they have made earlier.