24.02.202113:09 Forex Analysis & Reviews: Interest in Bitcoin continues to grow: how the price correction strengthened the reputation of the main cryptocurrency

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In the past few days, the international community has begun to doubt the feasibility of bitcoin as an independent financial instrument. This is due to the general market drop by 25% and a significant drawdown in the quotes of the first digital asset after a series of records. The situation was exacerbated by the alarming reports of the large bank JPMorgan regarding the stablecoins Tether, as well as negative statements about bitcoin by billionaire Elon Musk and the US Treasury Secretary.

Despite a difficult period for the entire market, the main cryptocurrencies are already starting to recover their positions, and the total crypto market capitalization has reached $1.5 trillion. However, it cannot be denied that the crypto market is starting to change its position by the economic situation. The price correction caused a storm of discussions by experts and the media and was perceived negatively because the market decline provoked significant financial losses for traders around the world. However, as paradoxical as it may sound, the price adjustment of bitcoin, on the contrary, strengthened its position and reputation as a stable market asset.

This thesis was voiced by Catherine Wood, CEO of ARK Investment Management. Wood said that the fall in bitcoin quotes and the general downturn in the market is natural. She explained her position by the fact that no market or asset shows only growth. It is difficult to argue with this statement, and in the case of Bitcoin, the price correction proves that all fears about the possible cyclicality of the digital asset and its uncontrolled growth were exaggerated.

Simply put, the adjustment of bitcoin made it clear that it is not a separate part of the market that is not subject to general rules. On the contrary, it became clear that the first crypto-asset is a financial instrument that does not fall out of the general dynamics of market development and reacts to economic and many other factors. And most importantly, Bitcoin showed that its growth was not spontaneous, but was due to the start of large investment injections. The bottom line is that the first digital asset remains a highly volatile instrument from a local perspective. However, if you look at the situation as a whole, it becomes clear that bitcoin is a predictable asset that also reacts to market fluctuations and is subject to its "laws".

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