TL; DR
Full story
So that BTC flush that took us from $70,000 to less than $68,000?
It didn’t just end with Bitcoin – it reached the entire market, and fast (within a four-hour period).
…but why?
Glad you asked.
Two days after former President Trump announced that if elected he would block the US from selling any of the seized Bitcoins, the US government has seized $2 billion worth of Silk Road Bitcoin moved.
It may not have been moved with the intention of selling (we still don’t know at this point), but if the market sees even a small hint that that kind of selling pressure is about to hit, investors will simply take profits. Being safe.
And if everyone is led to the same action (in this case, selling) by the same idea, it can have a cascading effect.
As the rule in crypto is: “when in doubt, zoom out” and you can see through the headlines…
For example:
“Bitcoin is dumping billions Market capitalization!”
Turns into:
“Bitcoin is dumping billions in market cap, at prices we haven’t seen since yesterday.”
This too shall pass🧘