A few thoughts on the biggest intraday drop of Bitcoin, and why it may look bearish in short term but VERY bullish for long term
👇
In a global crisis, all liquid assets will face sell-off, even gold. There is no liquidity support or central banker backing Bitcoin trading,
👇
In a global crisis, all liquid assets will face sell-off, even gold. There is no liquidity support or central banker backing Bitcoin trading,
no circuit break when the panic mode is on. Plus since last year traders are over-levered and the market is driven by derivative exchange instead of spot
The dramatic price movement is the result when all the above compound
The dramatic price movement is the result when all the above compound
Bitcoin is never a "safe haven" asset in a conventional sense, it’s not a hedge towards risk-on. Retail largely considers it as a speculative asset, institutional primarily treats it as an alternative investment with less than 1% of their book
Bitcoin was born in last global financial crisis, this is the first global crisis it faces. But this time is very different than 2008: it's not triggered by a specific asset, it’s not initiated from a market structural flaw, it’s not even about the financial market itself
The fundamental reason for all the shits this time in front of an epidemic comes from the lack of confidence towards economic growth, future prosperity, and losing hope in most governments and distrusting politicians in power
It's the desperation, anger and fear from everyone
It's the desperation, anger and fear from everyone
What Bitcoin is hedging against is exactly the inevitable aftermath of a large scale global crisis, especially under the regime of incompetent, corrupted and dishonest government: social order breakdown, bank run, hyperinflation and confiscation
Bitcoin is a resilient, self-sustainable asset without any government interference, which will further prove itself this time during the pandemic. The geopolitical ramifications of a robust Bitcoin economy are mind-boggling, the long term future of Bitcoin is extremely bullish
Simply ask yourself do you believe in whoever is in the power of your regime, do you trust the current political system can create a better future for your kids. if answers are both NO, Bitcoin by far is the only alternative
