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Posted on 4th June 2022
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I found this report on Devon Live rather bizarre, for a couple of reasons. Firstly, I was surprised that most of the customers trying to buy Bitcoin from the "Bitcoin ATM" in the pub in Devon are middle-aged women. Secondly, I was extremely shocked that people are still investing in Bitcoin, given that there was such a large drop in prices recently.
This article on CNBC, from the 12th of May reports that over $200 billion was erased from the entire cryptocurrency market in a single day. Although the price of Bitcoin has since picked up a little (not true for some of the other cryptocurrencies), the advice from Nicholas Cawley, a strategist at DailyFX, reported here on Time, is that "The technical outlook is neutral at best and Bitcoin really needs to trade back above $40,000 before any kind of bullish outlook can be confirmed." In other words, the market may not yet have bottomed-out, and investors should really not be buying-in just yet.
I have always said that the cryptocurrency market is a bubble, pure and simple. Whilst some readers may disagree, cryptocurrency has absolutely no inherent value and is not backed by any governments (with one minor exception), companies or physical assets. It is a fad; nothing more. Investors should therefore not be surprised by major market fluctuations.