Down 14% in the last month. Still way above its actual value (0) but headed in that direction.
I’m guessing cost of living is driving a lot of hodlers to liquidate. You have to imagine most of the money in this thing is institutional though so maybe it won’t matter that much.
Inflation is driving the cost of commodities up but BTC seems to move in the opposite direction. This is meaningful bc the value prop of BTC as an inflation hedge would suggest the opposite, and BTC overweight portfolios will underperform the diversified commodities basket. If this persists it’s only matter of time before we also see some institutional unwinding
I don’t follow that market super closely but it’s interesting nonetheless. It seems these big corrections happen from time to time as well so could just be more of the same. Still one wonders if we are starting to see some structural covariance.
I get the impression that a significant amount of crypto is held as a hedge against the collapse of the USD, so the people who won capitalism can stay wealthy after capitalism fails completely and is replaced.
Cryptocurrency isn’t a monolith, so while corporate holdings of Bitcoin might be a hedge against USD, a lot of other crypto trading is speculative, essentially criminal, and at the very least unethical.
Yeah, I didn’t mean to imply institutional buy-in gives the crypto market and industry more legitimacy. It’s just something that’s been on my mind this year with the way crypto has become an openly discussed plaything for the richest people on the planet. I vacillate between weighing the “outlast america” motive and the “techlords resent financelords for the power they traditionally monopolise” motive as the primary driver of stupid shit like the “Bitcoin Sovereign Wealth Fund” idea.
I’d be keen to hear you elaborate on this if you feel like it.
When I get some free time I can write more of my thoughts, but for now you can just check out Coffeezilla and Voidzilla.