After the Collapse of Bitcoin - What Happens to Cryptocurrencies?

Cryptocurrencies collapsed by more than 15%. Bitcoin fell below ,000 and reached its lowest level in six months. In addition, the decline is expected to continue. What is ahead in the world of cryptocurrencies - the Bulgarian National Television (BNT) asked Vladislav Dramaliev from the Bithope Foundation.

BNT: The price of bitcoin is nearly 50% lower than in November 2021, when it reached its peak. Is this due to global inflation?

Vladislav Dramaliev - Bithope Foundation: Yes, but not directly. Inflation is beginning to worry world banks, which until recently said it was temporary and completely under control, but unfortunately, it turned out not to be the case, and it was in fact caused not only by printing money but also by slowing down the supply chain. For this reason, central banks, in particular the Federal Reserve, which is the US Central Bank, have announced that they will reduce the rate at which they will print money and raise interest rates on deposits. And in fact, this news is usually quite chilling in the market.

BNT: How much has bitcoin collapsed in the last week and at what price is it currently traded?

Vladislav Dramaliev: I guess around 15-20%. And it is currently trading at ,000 for 1 bitcoin. In fact, it has traded at these levels for only 15% of its history, so even these low levels are quite high for this asset.

BNT: How far can this price drop go?

Vladislav Dramaliev: The decline could even reach 90%. From now on, in my opinion, the amount that can reach a decline is about 20 thousand dollars, but this is again based on historical information. The advantage of bitcoin is that if it costs 20 thousand, 30 thousand, 1 million, there will be no more...