We are know doubt ALL aware that BTC took a sudden huge downturn at the end of last week:
However it seems that no one knows why...
Investopedia's best guess is that three things are the cause:
To quote directly:
- The bitcoin price has become susceptible to wilder price swings as trading volumes on exchanges have declined and large trades are able to have a greater impact.
- SpaceX, of which Elon Musk is CEO, reportedly sold at least part of its bitcoin holdings.
- Concerns over the issues with China’s property market leading to a greater economic decline indicate bitcoin may still be viewed as a risk-on asset.
NB the reason I pick Investopedia as a source is because a few days on from the event this will have cut and paste the main points from other reputable crypto news outlets, it's all just cut and paste these reports.
So in short:
- People are bored as crypto prices haven't been very interesting recently.
- Elon must may have got bored or be skint so he sold a lot of BTC.
- Investors are worried about the lack of potential for growth in the wider economy.
After analysing the causes Investopedia usefully tells us that such price action means there could be more radical price action on BTC either up or down sometime in the future.
So in short: no one's got a fucking clue.
The Daily Mail's take:
You always have to watch out for the Mail, it's both a worrying and hilarious shit-rag at the same time:
The formula goes something like: make up a headline using the well known personality:
Then qualify in the first paragraph this is 'from reports' and then add in pretty much every negative piece of news that's happened to crypto over the past two years to construct a narrative that it's all down hill from here.
And then finish with one paragraph of good news that makes anyone that's buying crypto seem like a total moron.
Do mainstream media narratives matter...?
Once again we don't know... no one's prepared to offer up any level of certainly on what affects the BTC price, so if no one's certain what hyper-real events in the financial sector more generally affect BTC there's no way we can ever know what further or independent effects media reporting is going to have on the Price.
I just stick to the fundamentals and buy in times like these....
There are SO MANY institutions and wealthy people in the world and so little BTC relatively, it only takes a tiny percentage to want just 1% of their TNW in BTC and a tiny percentage to want to be one-coiners for the current BTC supply to be accounted for, and when that happens everyone else is left competing over a TINY amount of BTC so the price can go fucking mental.
And of course if we have a few million people wanting to be onecoiners, we'll have a few tens of thousands wanting to be 10 or 100 coiners and so on and up, EGO innit!
And given that capitalism and people are fucking mental, there's no way BTC ain't mooning hard at some point in the next X years. I mean just people holding it for the lolz is probably enough to send into six figures sometime soon-ish.
And that my friends, is a certainty, but certainly not financial advice!
In the meantime sit back and enjoy the ride and the FUD story, because that's all is: a story.