TL; DR
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Why has BTC fallen in recent weeks? Three main reasons: FTX liquidations, general regulatory sluggishness, and the US dollar.
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Why doesn’t this really matter? Our fundamental belief in BTC has not changed.
Full story
Okay, time for our bi-weekly (ish!) check-in with Bitcoin.
Spoiler alert: the price has been hit pretty hard in recent weeks.
Let’s discuss why, followed by why it might not matter.
First, why has BTC fallen?
There are a few theories floating around, but these are the three to consider:
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Currently, the devil FTX is seeking regulatory approval to liquidate $3.4 billion USD worth of Bitcoin, Ethereum, Solana and other digital assets.
Flooding the market with a few Billies isn’t disastrous, but investors are factoring that extra supply into their decisions, expecting FTX’s liquidation to be approved (in some form).
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Let’s file this under ‘general regulatory inertia’. A BTC ETF approval is still up in the air.
While it would likely bring in huge amounts of institutional investment, right now investors are saying, “Until you give me a firm date, I’m going to hold on to my money.”
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Believe it or not, the US dollar is doing quite well right now.
James Butterfill He put it nicely: the US dollar has shown strength lately, driven by the market’s “belief that we are in a soft landing,” after eight consecutive weeks of green candles.
So why shouldn’t this really matter?
Look, we are not financial analysts, far from it.
But the price movement of the past few weeks is just the price movement of the past few weeks!
Yes, market conditions may have changed.
But has our fundamental belief in BTC changed?
Absolutely not.
We would prefer a bi-annual checking in at BTC – but that wouldn’t be fun for anyone.