why is bitcoin crashing?

[Anonymous]

because it's a ponzi scheme

[Anonymous]

Anonymous wrote:It’s because most of the run up in the last 1-7 years has been due to pure speculation, much of which is leveraged, and people are moving their speculation over to precious metals, AI, rate earth and Quantum right now. Because those have had bigger returns recently.

Also a problem is that instead of being a store of value or hedge, crypto has repeatedly proved to be the most volatile when volatility hits.

Finally, this should give pause to those advocating for allowing people to underwrite and collateralize real world purchases/assets using crypto. Can you even imagine the scale of collapse if that were to pass? The ultimate house of cards.

I would question the thesis that everyone flocks to AI, quantum and precious metals at the moment. It’s more protective right now - fixed income/value US/internationals

[Anonymous]

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Anonymous wrote:I can’t believe that at this point people don’t understand bubbles and boom & bust cycles. OP do you really not understand this? Please stick to index funds until you get a better understanding of the basics.

You're being an ass. Bitcoin is different than most boom and bust cycles.

The last boom and bust was the crash of 2007/8, and that had a very very specific underlying cause that had been been flagged for years..... mortgage backed securities, ever increasing home prices that seemed economically unsustainable by those buying them, fraud in the real estate lending market, adjustable rate mortgages flipping.... there were so so many real and tangible economic indicators that we knew at the time were likely propping up the market and would come down. After the crash, we could do post-mortems and understand.

Most crashes have similar.

Bitcoin is different. It seems to have meaningless value. It has no inherent value other than the value people arbitrarily ascribe to it.

There may be more to it. I think that's what we're asking here. But if there is, it's certainly not just "hey markets always go up and down arbitrarily"

The closest this one seems is like the 2000 dot com crash, where people were publicly investing in companies based on ideas before any products had been built or designed, before any customers were signed up, and before any revenues were generated. Same kind of concept that people were betting on nothing . Only difference is that you were at least petting on an idea in 2000. So as an investor, you might have thought pets.com had a better business idea than askjeeves.com, which might have driven your investment decision. But crypto doesn't even have that.

So please enlighten us.

I agree that it has no inherent or productive value. I don't invest in it at all.

But the argument is that it will eventually be the world reserve currency. Just as much of the U.S. dollar's value today is based on its status as a world reserve currency. This status is quickly eroding and, the argument goes, BTC is no worse than USD and in some ways more protected from manipulation.

An uninsured currency backed by no government and currently used mostly for crime is unlikely to be the world's reserve currency. And this level of volatility is not a good argument for that.

lol well put.

This is not the reason it’s falling and not correct at all

Well it is the reason it will never become the “world reserve currency”!

Anyway got any links on the liquidty issue you mentioned? (and yes I get my crypto news on DCUM because all the news is such a sewer of crypto boosters that I might as well get it here.)

Sure but I think you need to subscribe to read the first one

Bitcoin loses Trump-era gains as crypto market volatility signals uncertainty   - https://www.reuters.com/business/bitcoin-loses-trump-era-gains-crypto-market-volatility-signals-uncertainty-2026-02-07/

https://www.ft.com/content/2b030926-2012-4446-b22d-e549e10e7086

[Anonymous]

The only crypto that will never fully die is Bitcoin. We are in a downturn now, but in 10 years in will be back up to 1 million. It’s so dumb, but that’s just the way it is.

[Anonymous]

Anonymous wrote:The only crypto that will never fully die is Bitcoin. We are in a downturn now, but in 10 years in will be back up to 1 million. It’s so dumb, but that’s just the way it is.

BTC will persist, but if its up to $10M that means sandwiches cost $5M.

There just aren’t enough greater fools.

[Anonymous]

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Anonymous wrote:because it's a ponzi sceme and they always fail.

No it’s because crypto is the currency of “shadow markets”. Folks who don’t want to be very visible. It tells you they transact less in bitcoin and likely store their liquidity in gov bonds or cash

My theory it’s a predictor of a higher volatility in overall stock market ahead of midterm elections

Wouldn’t prices go up if there is less liquidity?

No. When there is stock market volatility investors move their money to cash-like instruments /bonds which removes liquidity from assets markets. Volatile assets start experiencing the shortage first. Thus prices fall.
Remember 2008 crisis - all assets classes prices fell and very few people had cash available . Those who did have it to buy low made millions in real estate and stock market

It doesn’t actually “remove liquidity” though - it removes liquidity that doesn’t move the price. right? “Removed Liquidity” is just a description of what happens after the crash not the cause.

[Anonymous]

This is your periodic reminder that crytocurrency has no use except for speculation and crime. None whatsoever. Thank you for your attention to this matter.

[Anonymous]

Anonymous wrote:This is your periodic reminder that crytocurrency has no use except for speculation and crime. None whatsoever. Thank you for your attention to this matter.

It's also a good reminder that almost everyone in this thread has absolutely no idea what they are talking about. Hat tip to a few posters who get it, but it's just nonsense upon nonsense.

[Anonymous]

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Anonymous wrote:because it's a ponzi sceme and they always fail.

No it’s because crypto is the currency of “shadow markets”. Folks who don’t want to be very visible. It tells you they transact less in bitcoin and likely store their liquidity in gov bonds or cash

My theory it’s a predictor of a higher volatility in overall stock market ahead of midterm elections

Wouldn’t prices go up if there is less liquidity?

No. When there is stock market volatility investors move their money to cash-like instruments /bonds which removes liquidity from assets markets. Volatile assets start experiencing the shortage first. Thus prices fall.
Remember 2008 crisis - all assets classes prices fell and very few people had cash available . Those who did have it to buy low made millions in real estate and stock market

It doesn’t actually “remove liquidity” though - it removes liquidity that doesn’t move the price. right? “Removed Liquidity” is just a description of what happens after the crash not the cause.

The crash is caused by investors moving funds from riskier to less risky assets and by actual shortage of liquidity when multiple risk assets investors face margin calls. It can also be triggered by tightening monetary policy or bank lending regulations

[Anonymous]

This was a pretty good answer. -->

>>>You’re gonna realize it’s a Ponzi scheme made up by people in the Epstein files.

[Anonymous]

Anonymous wrote:

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Anonymous wrote:

Anonymous wrote:because it's a ponzi sceme and they always fail.

No it’s because crypto is the currency of “shadow markets”. Folks who don’t want to be very visible. It tells you they transact less in bitcoin and likely store their liquidity in gov bonds or cash

My theory it’s a predictor of a higher volatility in overall stock market ahead of midterm elections

Wouldn’t prices go up if there is less liquidity?

No. When there is stock market volatility investors move their money to cash-like instruments /bonds which removes liquidity from assets markets. Volatile assets start experiencing the shortage first. Thus prices fall.
Remember 2008 crisis - all assets classes prices fell and very few people had cash available . Those who did have it to buy low made millions in real estate and stock market

It doesn’t actually “remove liquidity” though - it removes liquidity that doesn’t move the price. right? “Removed Liquidity” is just a description of what happens after the crash not the cause.

The crash is caused by investors moving funds from riskier to less risky assets and by actual shortage of liquidity when multiple risk assets investors face margin calls. It can also be triggered by tightening monetary policy or bank lending regulations

Sorry can you explain “actual shortage of liquidity”?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:because it's a ponzi sceme and they always fail.

No it’s because crypto is the currency of “shadow markets”. Folks who don’t want to be very visible. It tells you they transact less in bitcoin and likely store their liquidity in gov bonds or cash

My theory it’s a predictor of a higher volatility in overall stock market ahead of midterm elections

Wouldn’t prices go up if there is less liquidity?

No. When there is stock market volatility investors move their money to cash-like instruments /bonds which removes liquidity from assets markets. Volatile assets start experiencing the shortage first. Thus prices fall.
Remember 2008 crisis - all assets classes prices fell and very few people had cash available . Those who did have it to buy low made millions in real estate and stock market

It doesn’t actually “remove liquidity” though - it removes liquidity that doesn’t move the price. right? “Removed Liquidity” is just a description of what happens after the crash not the cause.

The crash is caused by investors moving funds from riskier to less risky assets and by actual shortage of liquidity when multiple risk assets investors face margin calls. It can also be triggered by tightening monetary policy or bank lending regulations

Sorry can you explain “actual shortage of liquidity”?

When Fed Reserve raises interest rates it increases lending costs => banks have less money to lend and invest so less money available to flow into various financial instruments including stocks.
Also same happens if reserve requirements get tighter or when stock investors face negative spiral of margin calls on their highly leveraged positions and should repay to their lending institutions . What happened why bitcoin now, with dotcok bubble investors and highly leveraged RE bubble in the past

[Anonymous]

Anonymous wrote:This is your periodic reminder that crytocurrency has no use except for speculation and crime. None whatsoever. Thank you for your attention to this matter.

This.

When you own stock, it is in a company, and the share value is based on some combination of earnings, growth potential and dividend. When you own a commodity like gold, you own the commodity or a paper representation of said commodity.

Crypt? What is it? Its value is based on....whatever. Nothing underpins its value. Nada. It is total vaporware. Sure, people have made money on it, but that is because a sucker is born every minute.

[Anonymous]

When you can explain to me how Bitcoin is valued, I'll explain to you why it's going down. Bitcoin is the modern day tulip. It's only a matter of before the entire thing crashes and years from now people will be asking "what were you thinking?". You've been warned.

[Anonymous]

Anonymous wrote:When you can explain to me how Bitcoin is valued, I'll explain to you why it's going down. Bitcoin is the modern day tulip. It's only a matter of before the entire thing crashes and years from now people will be asking "what were you thinking?". You've been warned.

I am not a proponent and don’t own any. But, I will point out that Wall Street has invested a lot the last few years in trying to mainstream BC with ETFs, custody business, etc. So I think they will find a way to keep it relevant. I would get interested around a few thousand a coin as a total spec.