The European Central Bank released a press release after the FTX exchange went under, assessing the state of Bitcoin (BTC) and other cryptocurrencies. This ECB blog post, titled “Bitcoin’s Last Stand,” decimates Bitcoin. What is it, and what must we keep in mind?
Bitcoin “on the way to uselessness”
After the recent collapse of the former second largest cryptocurrency exchange in the world, FTX, the European Central Bank (ECB) met with some global regulators to take stock of the cryptocurrency market and establish the major points of clearer regulation.
The apparent stabilisation of bitcoin’s value is likely to be an artificially induced last gasp before the crypto-asset embarks on a road to irrelevance. #TheECBblog looks at where bitcoin stands amid widespread volatility in the crypto markets.
Read more https://t.co/Hk1LuYX2de pic.twitter.com/I3Uidks8Xo— European Central Bank (@ecb) November 30, 2022
This press release, titled “Bitcoin’s Last Stand,” has the lofty goal of “taking stock of the position of Bitcoin.” The ECB provides us with a zoom on the most recent collapse and several times debunks claims, but fails to present a comprehensive, unbiased picture.
The ECB research does not contextualize the recent decline from $69,000 to about $17,000; it just draws attention to it. In fact, there have always been times of huge growth on the bitcoin market, interrupted by negative phases known as bull run and bear market, respectively.
However, analysts from the European Central Bank claim that Bitcoin is not likely to rise again but will undoubtedly decline instead, “which was already foreseeable before FTX went bankrupt”:
“For bitcoin proponents, this apparent stabilization is a sign of respite on the way to new highs. However, it is more likely to be an artificially induced last gasp before the road to uselessness. »
