TL;DR
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Why is BTC down over the past few weeks? Three main reasons: FTX liquidations, general regulatory tardiness, and the US Dollar.
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Why may this not really matter? Our fundamental belief in BTC hasn’t changed.
Full Story
Righto, time for our bi-weekly (ish!) check in with Bitcoin.
Spoiler alert: it’s price has been hit pretty hard in the past few weeks.
Let’s discuss why, followed by why it may not matter.
First off, why is BTC down?
There are a few theories going round, but these are the three to keep in mind:
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Right now the devil FTX is seeking regulatory approval to liquidate $3.4 Billion USD in Bitcoin, Ethereum, Solana and other digital assets.
Flooding the market with a few Billies is not disastrous, but investors are pricing that additional supply into their decisions, with the expectation that FTX’s liquidation will be approved (in some way, shape or form).
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Let’s file this one under ‘general regulatory tardiness.’ A BTC ETF approval is still up in the air.
While it would likely bring massive amounts of institutional investment into the space, right now, investors are saying: “Till you give me a firm date, I’ll hold onto my money.”
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The US dollar – believe it or not – is actually doing pretty well right now.
James Butterfill put it nicely when he said: the US dollar has shown strength as of late, driven by the “market’s belief we are in a soft landing scenario,” having posted eight straight weeks of green candles.
So why may this not really matter?
Look, we’re not financial analysts – far from it.
But the price movement over the past few weeks, is just the price movement over the past few weeks!
Yes, the market conditions may have changed.
But has our fundamental belief in BTC changed?
Absolutely not.
Ideally we’d like to be doing a bi-yearly check in with BTC – but that wouldn’t be fun for anyone.
