$ (BTC) The Bitcoin Thread - NO SHITCOINERS ALLOWED

BTC almost always takes a dive after other commodities do. It's completely irrational. Maybe someone who tracks the correlation here more closely has an opinion on it, but it does seem to react more rationally in the middle and long terms even with short-term peaks and valleys of absurd volatility.

Also to the extent something like coronavirus even has an effect on crypto I think it would be more pronounced for BTC, specifically, because most of the big farms are in China. In theory there should be no effect at all as these are very sparsely manned.
I'd also have thought it would be independent of market swings, but it makes sense. Bitcoin sets the value of the rest of the crypto market, most people I know who do crypto treat it as a speculative investment, except for miners of course.
 

melty

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Was the drop from panicked speculators? Or was it from institutions facing a liquidity crisis?


Gold futures have been falling, despite gold's historical role as a place for safety during tumultuous economic times. Its price has fallen to $1,610 on Thursday from $1,675 an ounce at Monday’s close.

All this suggests that major financial players are experiencing a cash crunch, and are selling whatever they can as a result. That would help explain the seeming contradiction of assets that should go up in value in a time of economic peril instead falling in value.
 

FuckedUp

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Haven't done any of this kind of stuff before, but I bought $500 of crypto (including BTC) yesterday due to the crash and me thinking the corona pandemonium will somehow increase usage of virtual currency.
 
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Particle Bored

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Haven't done any of this kind of stuff before, but I bought $500 of crypto (including BTC) yesterday due to the crash and me thinking the corona pandemonium will somehow increase usage of virtual currency.
It seems to have stabilized, so hopefully if nothing else crazy comes down the pipe, there will be a sizeable pump in the near future. Coming Monday/Tuesday should be interesting.
 

2WokeB4BrainPills

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Was the drop from panicked speculators? Or was it from institutions facing a liquidity crisis?

Check the chart of BTC since november. Now check the chart of gold spot price since november.

IMO they are doing the same thing for the same reason. With gold, in 2008 the larger institutions holding it cashed out for purpose of gaining liquidity. That made it a very good time to buy in, just before the ensuing financial havok undermined confidence in the USD and pumped anything that looked like a safe alternative.

I am wagering (quite literally) that the same thing is happening again, but now BTC is coming along for the ride. Very interesting and telling that crypto is behaving this way.
 

melty

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Check the chart of BTC since november. Now check the chart of gold spot price since november.

IMO they are doing the same thing for the same reason. With gold, in 2008 the larger institutions holding it cashed out for purpose of gaining liquidity. That made it a very good time to buy in, just before the ensuing financial havok undermined confidence in the USD and pumped anything that looked like a safe alternative.

I am wagering (quite literally) that the same thing is happening again, but now BTC is coming along for the ride. Very interesting and telling that crypto is behaving this way.
I agree it's the true reason it's going down. I sold 1/4 of mine yesterday in anticipation of another drop tonight (to buy back in at) if this is true. Fwiw I don't hold a lot of Bitcoin.
I am concerned if it will actually become a safe haven asset in the coming months, or if it's still too much of a meme that people don't understand and don't want to deal with. I'm going to hold most of mine and see what happens.
Edit: I'm an idiot and it did nothing and then increased in value several days later.
 
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2WokeB4BrainPills

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And now this:


IMO, this confirms my suspicions about the recent efforts to kill encryption on the internet: it is part of a broader move against crypto. They are first trying to set up an "alternative" which is governed by the Fed or Treasury, then they will slowly turn the crank on any alternative currency by bribing or threatening big players with US exposure to swap to it. They may go so far as to try to get ISPs to block "unapproved" crypto.

They are terrified that bitcoin/shitcoin will unseat USD and they will lose control of the reserve currency and slowly be usurped, and lose their ability to inflate to fund govt deficits and paper over recessions. They know the Fed's printing will have everyone running for the exits and they're trying to seal them off asap.

I wonder if the crypto community understands that the feds now clearly see them as an existential threat. I hear a lot of triumphalism from them about how crypto can't be stopped, but I think it is very naive, personally.
 
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