Hey there! Recently, Coinbase, a big company where people can buy and sell digital money like Bitcoin, discussed why Bitcoin’s price has been falling. They said it’s not just about problems with Bitcoin or other digital money but also because the whole economy has been having a tough time, just like the stock market and gold prices, since the middle of April.

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• Coinbase analysis links Bitcoin’s recent decline to broader economic trends rather than cryptocurrency-specific issues.
• Even though Bitcoin’s price fell a lot, it’s still doing pretty okay because more people are starting to treat it like regular money.
• The report says that the whole world’s economy, not just how much money goes into Bitcoin ETFs, helps decide Bitcoin’s price. They use what’s happening with gold as an example to explain this.

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Bitcoin’s Recent Slump Reflects Wider Economic Trends, According to Coinbase Analysis

They discovered that Bitcoin’s price dropped significantly in April, the biggest drop since last June. However, David Han and David Duong, who studied trends at Coinbase, are still hopeful. They noticed that even though Bitcoin’s price went down a lot, it has seen bigger drops before.

Han and Duong think Bitcoin is getting stronger, and more people are starting to use it like regular money. This is because more places around the world are allowing people to buy Bitcoin through something called ETFs, which is like a way to invest in Bitcoin without having to own it directly.

They also talked about how, even though people are not putting as much money into Bitcoin through these ETFs right now, the real value of Bitcoin can be seen by how much it’s traded every day. They also mentioned that just because people in the U.S. are not putting money into gold ETFs, it doesn’t mean gold prices are going down everywhere.

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