Bitcoin's True Face Revealed Amid Financial Market Shock... The Illusion of an 'Independent Asset' Has Shattered



As global financial markets fluctuate amid the trade war between the United States and China, Bitcoin, which has long claimed to be an 'independent asset,' has also seen its value plummet, drawing mixed evaluations. Bitcoin, which surpassed its all-time high of $100,000 in January, has now fallen to around $78,000, and particularly on April 6, it plunged to as low as $74,000.

"Independent from the Market? That Was Just an Illusion"

In a recent column, The Verge's Elizabeth Lopatto began with the somewhat sarcastic expression "Whoopsie daisy Bitcoin!" while criticizing Bitcoin's price drop. Lopatto pointed out that "the claim that Bitcoin is independent from the general market has now lost its persuasiveness."

As the United States imposed 104% tariffs on Chinese products, and China retaliated with 84% tariffs on American products, global financial markets were engulfed in a major shock. Bitcoin was no exception as stock markets plummeted. The entire cryptocurrency market was painted red.

Lopatto noted, "If Bitcoin were truly a currency free from government influence, Donald Trump's foolish tariff policies should have actually strengthened Bitcoin." This is because one of Bitcoin's main uses is for illegal transactions, and in situations where tariffs are imposed on a large scale, smuggling and tax evasion are likely to become more popular. However, the reality was the opposite.

From 'Number Go Up' to 'Number Going Down'

Lopatto analyzed that Bitcoin's rapid growth was not driven by 'true believers' but by ordinary individual investors and Wall Street participation. These participants joined for financial gain rather than ideological beliefs, so when financial instability begins, they are the first to dispose of risky assets like Bitcoin.

"People who invested in Bitcoin 'for fun' are now selling because they need that 'fun money' in real currency," Lopatto explained. "Many people have increased Bitcoin's value, but they don't see it as a future technology or currency; they just like 'seeing the number go up'."

As reasons why Bitcoin is unsuitable to function as a currency, Lopatto cited transaction inefficiency, the risk of fraudsters and hackers, and extreme volatility. She concluded, "The era of numbers going up is over, and the era of numbers going down has arrived."

Differing Views: Short-term Shock vs. Long-term Value

However, some argue that Bitcoin's price drop is only temporary, and that its role as a store of value could actually strengthen during periods of economic instability in the long term. They claim that Bitcoin's limited supply and independence from central bank control could act as a hedge against inflation.

Currently, Bitcoin is trading at around $76,500, down 3.93% from the previous day. Investors are concerned about the impact of the US-China trade war and macroeconomic uncertainty, and Bitcoin's future price is expected to be significantly influenced by global economic conditions and changes in trade policies.

Identity Crisis: What is Bitcoin After All?

Bitcoin's initial goal was to be a kind of libertarian-anarchist public currency that bypassed financial institutions and central banks. However, as Lopatto pointed out, this identity has long been diluted with the emergence of Bitcoin ETFs and Wall Street participation.

It remains to be seen what path Bitcoin will take as trade wars and financial instability continue. However, recent price drops indicate that Bitcoin is no longer a safe haven separate from the existing financial system. In the end, Bitcoin has value because the dollar (or yen, euro, etc.) has value, and as long as it is a financial asset that allows one to gain more dollars, Bitcoin is useful. But there don't seem to be many uses beyond that.

Ultimately, we find ourselves asking again: Is Bitcoin really the future of money, or is it just another speculative asset?

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