..aaaand, we’re back again – malfunctioning the price of bitcoin. Sunday evening Bitcoin Flash Crash soaked a red candle the size of Jupiter. Even more eerie, it continued to fall on Monday morning, falling below $111,000.
Well, in this area, we say no one knows why prices move. But sometimes we… not as much as we would like. Today I will explain two things. Late last week, the last 24 hours of Shenangan and Fed Jerome Powell said.
Unruly Bitcoin Price
The end of Sunday (European time) was pretty disgusting:
When a chart looks like that, it’s hard to say “no one knows.” I know someone plunged the Bitcoin price to about 3,000 in just a few minutes. If it’s not a specific macro event like last week, eating through such an order form is a) a large order, and – the equivalent of the same thing – b) mass clearing.
Yesterday there were both signs.
or…
This is an undeveloped market, and how small we are and how illegal the Bitcoin market is is ridiculous. (As always, in Bitcoinland, there are Schmacks who are willing to turn bad things into good things, verifying.)
The immediate 2.5% drop in Bitcoin prices last night could be one-time due to whale sales and liquidation, but the progressive oblique movement between the night and Monday morning (Bitcoin prices fall below $111,000) is far more worrying. Ignore the big, noisy whales… is Wth happening? Son, why are we dying slowly when we should win!
All the macro arrows in the world are heading in the right direction: why is Bitcoin price falling in this range, why is it a sane rating double or triple from here? (No, it didn’t fall below $111,000 because Metaplanet announced its purchase or because of it or because of its involvement).
The price does whatever it wants. Shit will do anything.
Bitcoin price therapy is definitely necessary: Bitcoin prices simply do whatever is necessary without considering sane or reasonable valuation. Don’t care in the world for the most bullish situation. The biggest pain, I heard it said. Even Saylor’s million dollar averaging produced many dents:
One of these magical tea leaf reading techniques (128-day moving average) is that today’s Bitcoin Magazine Pro team is $108,500. Saylor et al already sells kidneys and chairs, so what remains?
What’s more interesting/terrifying is that it keeps falling afterwards and hits a new low. Our most scoop-like explanation is that all these shits (BTC Inc owner Bailey recently incinerated $41 million) are doing one. Some of the liquidated red candles have slow, crumbled, time-weighted prices.
Certain Cypherpunk OGs seem to know the structure.
Bitcoin Price and Powell’s Intestines
You may actually know what happened in (some sort of) the market. Last week, August 22nd, 10am Eastern: Released on the Fed’s website was a statement/upgrade to the Fed’s monetary policy framework. It was widely interpreted as a future easing of card monetary policy. How do you know this? Because all (hard) asset jumps jumped and the dollar index fell:
9:59:49…Bitcoin price = $112,393, according to Bitcoin Magazine Pro charts. 10:00:49, after 1 minute, it’s 113459. Minutes later, it reached 115,000, and Bitcoin prices rose 2.3% on the news.
This is kind of shit that drives the market, and I’m sure this is because of the huge instantaneous movement.
(Reference: 9.59, DXY = 98.7; 2 minutes later, 98.15; 1 minute, 97.8; That’s 1%.
Now we found the source – the release of Powell’s speeches and statements. Which of his statements is what shocking market?
What happens with such releases, or inflation or unemployment due to BLS – means that simple trading algorithms can be updated immediately, valuing seconds and often followed by a second-second trading effect. After 10, 20, 30 minutes involving human and intellectual evaluation, the movement itself often reverses. After all, it was all nothing. This time, it wasn’t because Bitcoin was trading high over the weekend (until someone ruined the fun on Sunday).
Powell’s statement last week revealed that
Inflation has risen a bit, but unemployment has dropped significantly as GDP growth has been controlled and fallen (though a “hard balance of curiosity” where both supply and demand fall together) … And they discard this entire false idea of the average inflation target (over a period that no one has ever specified).
“In the near future, the risk to inflation will be leaning upside down, lowering the risk to employment — a challenging situation.”
However, Powell concluded that these risks “may ensure that we adjust our policy stance.”
Within minutes and hours of the speech and statement release, Bitcoin price peaked at $117,000, then returned to $116,000. This is a market participants organically analysing and assessing what this new state means.
My “No one knows why” is still held. No one knows which part of Powell’s statement is important. This is because new information is always fused with the fact that it had participants in the forecast market. What we do when we play these catch-up, ad-hoc, case descriptions is playing games after streamlining. It’s not that impressive.
It’s totally pathetic. Bitcoiner needs to be rich and prosperous, but not poor and distraught.
Bitcoin price therapy. Meet Bitcoin in Hong Kong, Asia.
Source: https://bitcoinmagazine.com/markets/bitcoin-price-drops-again-and-nope-its-still-not-because-of-the-fed
