US markets have reopened with sellers and weakness on the charts continues as Bitcoin struggles to maintain $88,000. Although everyone says that the developments on the macro front have a negative impact on Bitcoin, there are also those who think differently. Today we will discuss the current perspectives of well-known names on cryptocurrencies.
The Real Reason for Bitcoin’s Fall
No matter what anyone says, we have all experienced and seen the instantaneous effects of macroeconomic developments on the graphics. Neither the tariff debates nor the wars ended throughout the year. Every time Bitcoin price moved up and down. Andre is assertive on this issue and at least thinks that the recent declines are not due to macroeconomic factors.
“No, Bitcoin’s performance has not been affected by macroeconomic factors recently. The majority of the (bearish) performance has been driven by BTC-specific factors – namely LTH sell-offs.
This includes Mag7 (top 7 tech stocks) and Gold “This explains the huge difference between it and other major assets such as those that exhibit a very positive macroeconomic picture.”
Yes, cryptocurrencies were falling while US technology stocks were losing, but despite the recovery, things did not change in cryptocurrencies. The rise in gold price is also supportive for Bitcoin under normal conditions and is fed by monetary expansion. In an environment where the two major assets followed by Bitcoin are on the rise, the current situation of the crypto may be related to stronger sales in an environment where volumes are weakening. At least what we have experienced since October.
What Bitcoin Is Not “What Is It Not?”
It is not a hedge against inflation. We mentioned that BTC faced a historical test in an environment where the Fed rapidly increased interest rates. However, BTC failed, and the well-known macroeconomic expert Henrik Zeberg drew attention to this very issue, saying that BTC was actually “a leveraged play on risky assets tied to a strong economy, strong stock market.”
BlackRock Its CEO also said that Bitcoin is “the best asset that prices fear.” An asset that prices fear so well is the only thing worth shorting for hedges. Accordingly of BTC And more generally, for cryptocurrencies to rise, liquidity needs to increase, Trump needs to stop bullshitting, and the stock market needs to stay strong.
Just yesterday, Trump threatened Iran again and there are still 3 years left in his term.
“What we saw was that BTC fell about 77% while inflation rose above 5% and remained high for a while.
“One chance – one opportunity” – and BTC failed this test miserably!
The truth is… BTC is a leveraged play on risk assets that depend on a strong economy, a strong stock market, AND ample liquidity. In other words, a RISK ASSET that crashes harder than the stock market and is not a HEDGE against inflation or depreciation. However, before many people understand this BTC “I’m afraid they’ll have to see their portfolios crash with.”
