This is the biggest opportunity for anyone to buy BTC. BTC has an inflation rate lower than gold and it will continue to drop after the next halving and future halvings. I am forever grateful to be in this space. I am a step ahead.
The price of bitcoin dropped from $69,000 to $16,000. This is a very strong drop in the price of bitcoin.
However, are there any fundamental reasons for the fall in the price of the first cryptocurrency?
Certainly, there are some reasons...
Recently, the pressure of state regulators on cryptocurrencies (and bitcoin, in particular) has increased. There are accusations against Bitcoin that the impact of its mining on the global ecology is negative.
However, such accusations are largely manipulative in nature. Bitcoin is a very promising financial asset. This decentralized protocol for the transfer of value in the virtual space is of great fundamental importance for all of humanity.
Therefore, in the long term, the price of Bitcoin will rise. Right now, in my opinion, is a good time to invest in Bitcoin.
Surely it is not easy to describe any one effect that causes price movements, yet even so there are some assessments that are more convincing than what you had outlined above..
In other words, there have been several high level gambling schemes that have come to light in the past 6 months, and the shenanigans of one scheme showed the shenanigans of the other schemes.. in which a lot of them either did not have the bitcoin that they claimed to have or they were overly leveraging bitcoin that they had or lending it out multiple times (which is similar to not having the bitcoin that you claim to have).. or creating fake tokes to appear that you have bitcoin when you don't.. so in some sense there were additional ways in which some large players were gambling or expecting that the BTC price would not fall below certain points, so their finances relied upon the BTC price going up or staying flat but not going down below certain price points.. and in that regard, there has been more and more fall out and downward price momentum that comes from some folks being forced to sell BTC and when others can see those downward BTC price pressures that also contributes to additional downward price pressures, even if other aspects of bitcoin are not broken - while at the same time a lot of excessive gambling has various contagious effects.
Of course, we can list some of the scams and/or major fall out, but we are likely not going to necessarily need to list them all or even describe how they were all related, but in May we had started with the Luna/Terra loss of pegging and the sell pressure and then 3 arrows capital, Celsius, voyager, Blockfi, miners going out of business or suffering from pressures of lower prices and higher hashpower, then FTX and Genesis and also contagion into issues with GBTC and Gemini's earn product.. and potentially other contagions that we do not yet know... and surely within an environment in which the US Fed has been aggressive with its raising of interest rates (tightening of credit markets).
I am not going to proclaim to know everything that contributed to how we got to where we are at...or the extent to which there is additional downward BTC price pressures or how much our correction is over. The bottom for BTC could be in or it might not be in yet. On a personal level it remains good practice to attempt to prepare psychologically and financially for either price direction (which seems to always be the better of recommendations).