I woke up this morning and to my surprise bitcoin hit 38k gang, the only thing better than this news would be the 28k gang. I naturally funded my account and went in to set some limit orders and pick up a few of the cheapest sats we've seen since the China mining ban in 2020.
Why is bitcoin going down? No clue, of the stories going around we hear negative stories such as:
- Sweden pushing the EU to ban POW mining
- Russia looks to ban bitcoin
- Bitcoin funded murder case
- Fed planning 3 rate hikes
Personally, I think the Fed rate hike talk was the catalyst as all risk assets sold off on that news pushing down stocks, bitcoin, and crypto. The rest of the news mentioned just seems to add a little more uncertainty which can easily shake out those who only see it as a short-term trade or get bullied out of their bitcoin position.
No more dry powder
Bitcoin has been trending downwards from its all-time high. Especially towards the end of the year and the new year. I feel most retail investors are tapped out spending their money over the festive season and the wait for that January paycheque means there are not enough extra funds for them to save and invest.
The bitcoin game is all about dopamine, when there hasn't been a price pump in a while, you will see speculators and traders spin-off into shitcoins to try and pocket spreads or stable coins and hide out there for yield.
The longer the price trades sideways the less attractive it is to speculators who are often price insensitive, since they buy on momentum. Whereas hodlers tend to nibble at the supply hoping the price trades downwards or sideways so they can pick up more bitcoin.
It's a game that has repeated time and time again, when bitcoin is boring it's moving from weak to strong hands and as the float dries up, and prices move up, the speculators jump back in.
Rekt Pal only owns one Bitcoin?
Bitcoin is a long-term game and as people who have a low-time preference come in, they tend to fall off the bandwagon. I remember back when Raoul Pal first discovered bitcoin, he spoke about it with such conviction. That he found an asset class that can back the unfunded pensions and provides an investment opportunity for Millenials.
The Pal of today, however, sings a different tune, his intellectual dishonesty has been on full display on Twitter as he panders to his shitcoin sponsors. Traders like Pal aren't interested in bitcoin, they're interested in taking their dollars and rehypothecation it to flip them for more dollars in the future.
When your goal is more dollars, you're optimizing for less bitcoin. He apparently now owns 1 Bitcoin and claiming that ETH will be the trade of a lifetime.
If we have a look at ETH since launch priced in Bitcoin, yes it's way up from its launch price, but it's down more than half its all-time high in satoshis and doesn't look like it's ever going to get back to those highs or surpass them.
He clearly feels at home in the shitcoin space where no one questions him, whereas in Bitcoin plenty have schooled him in a public forum.
I find these spats hilarious, but it's not going to distract me from the end goal which is stacking more sats. There is a clear loss in conviction in bitcoin which is great for holders looking for stack. You've had to pay a premium for the last few months to store your wealth in BTC and now is the chance to average down your cost per satoshi.
Have your say
What do you good people of HIVE think?
So have at it my Jessies! If you don't have something to comment, "I am a Jessie."
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