Bitcoin (CRYPTO: BTC) has fallen more than 35% from its all-time high, plunging well below that $100,000 milestone. Why? It could be several things. Generally speaking, investors have been shying away from riskier assets in recent weeks. What’s clear, though, is that Bitcoin’s decline is normal.
Bitcoin has historically endured crypto downturns. Its anti-inflationary appeal remains, often described as digital gold. Priced in U.S. dollars, a fiat currency, Bitcoin’s price has risen as the expanding monetary supply has weakened the U.S. dollar’s purchasing power over the years. The reserve currently holds an estimated 207,189 BTC.
Bitcoin’s long-term value requires continued adoption to drive demand, and therefore market prices, higher. With the U.S. government backing Bitcoin, institutions may change how they view it and other cryptocurrencies. Continued real-world use cases, such as payment acceptance and financial products, all collectively move the needle over time. Investors shouldn’t go all-in on Bitcoin.
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