why is bitcoin crashing?

[Anonymous]

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”?

[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.

[Anonymous]

Bitcoin is engineered money; a revolutionary innovation. It's here to stay and will only increase in value over time.

I don't tell people to buy bitcoin. I suggest that they learn about it and come to their own conclusions.

Here's a starting point, for anyone genuinely interested:
https://youtu.be/YtFOxNbmD38?si=_e94F5L1-yBZLk3A

[Anonymous]

Anonymous wrote:Bitcoin is engineered money; a revolutionary innovation. It's here to stay and will only increase in value over time.

I don't tell people to buy bitcoin. I suggest that they learn about it and come to their own conclusions.

Here's a starting point, for anyone genuinely interested:
https://youtu.be/YtFOxNbmD38?si=_e94F5L1-yBZLk3A

This presentation argues that **debased currency** is the root cause of modern societal issues, ranging from rising costs to family breakdown. Using a fictional parable of two leaders, the speaker contrasts a **fixed monetary system** with one controlled by a "big red button" that allows for endless money printing. The narrative explains how **government intervention** through currency expansion leads to distorted prices, lower product quality, and increased wealth inequality. This process ultimately forces businesses to cut corners and people to lose their **purchasing power**, creating a cycle of dependency on the state. The speaker identifies **Bitcoin** as the real-world equivalent of "perfect money" because it is decentralized and scarce. By adopting this **incorruptible standard**, he believes society can separate money from state control and restore global prosperity.

[Anonymous]

Anonymous wrote:Bitcoin is engineered money; a revolutionary innovation. It's here to stay and will only increase in value over time.

I don't tell people to buy bitcoin. I suggest that they learn about it and come to their own conclusions.

Here's a starting point, for anyone genuinely interested:
https://youtu.be/YtFOxNbmD38?si=_e94F5L1-yBZLk3A

A currency that constantly gains value sounds great, but it can actually paralyze an economy.

When deflation takes hold, people stop spending and "HODL" instead, waiting for prices to drop further.

This shift grinds economic activity to a halt—because why buy today what will be cheaper tomorrow?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Bitcoin is engineered money; a revolutionary innovation. It's here to stay and will only increase in value over time.

I don't tell people to buy bitcoin. I suggest that they learn about it and come to their own conclusions.

Here's a starting point, for anyone genuinely interested:
https://youtu.be/YtFOxNbmD38?si=_e94F5L1-yBZLk3A

This presentation argues that **debased currency** is the root cause of modern societal issues, ranging from rising costs to family breakdown. Using a fictional parable of two leaders, the speaker contrasts a **fixed monetary system** with one controlled by a "big red button" that allows for endless money printing. The narrative explains how **government intervention** through currency expansion leads to distorted prices, lower product quality, and increased wealth inequality. This process ultimately forces businesses to cut corners and people to lose their **purchasing power**, creating a cycle of dependency on the state. The speaker identifies **Bitcoin** as the real-world equivalent of "perfect money" because it is decentralized and scarce. By adopting this **incorruptible standard**, he believes society can separate money from state control and restore global prosperity.

I've always found this to be a strange argument by crypto bros when Bitcoin only works (and barely, at that) because it is constantly printing new "money".

[Anonymous]

Anonymous wrote:Bitcoin is engineered money; a revolutionary innovation. It's here to stay and will only increase in value over time.

I don't tell people to buy bitcoin. I suggest that they learn about it and come to their own conclusions.

Here's a starting point, for anyone genuinely interested:
https://youtu.be/YtFOxNbmD38?si=_e94F5L1-yBZLk3A

It is literally nothing and not backed by anything.

the Dollar is backed by the faith and credit of the US government, which, while weaker now than this time last year, still has some potential value.

Crypto literally has no value other than what traders ascribe to it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Bitcoin is engineered money; a revolutionary innovation. It's here to stay and will only increase in value over time.

I don't tell people to buy bitcoin. I suggest that they learn about it and come to their own conclusions.

Here's a starting point, for anyone genuinely interested:
https://youtu.be/YtFOxNbmD38?si=_e94F5L1-yBZLk3A

This presentation argues that **debased currency** is the root cause of modern societal issues, ranging from rising costs to family breakdown. Using a fictional parable of two leaders, the speaker contrasts a **fixed monetary system** with one controlled by a "big red button" that allows for endless money printing. The narrative explains how **government intervention** through currency expansion leads to distorted prices, lower product quality, and increased wealth inequality. This process ultimately forces businesses to cut corners and people to lose their **purchasing power**, creating a cycle of dependency on the state. The speaker identifies **Bitcoin** as the real-world equivalent of "perfect money" because it is decentralized and scarce. By adopting this **incorruptible standard**, he believes society can separate money from state control and restore global prosperity.

I've always found this to be a strange argument by crypto bros when Bitcoin only works (and barely, at that) because it is constantly printing new "money".

Eventually bitcoin will stop being generated i think at 21M coins?

We are at 19M but will take awhile to reach end.

Lost coins are a real problem: about 4% of coins are lost each year.

In 2026, the number of bitcoins lost each year is starting to outpace the number of new bitcoins being mined. This means the "effective" supply of Bitcoin is actually shrinking.

As a currency, a shrinking money supply.

[Anonymous]

Because BTC has no inherent value. And when the electricity goes out, what are you left with? BTC is the modern-day tulip. Sell while you still have a profit (assuming you didn't foolishly buy high).

[Anonymous]

Because people’s AI is telling them the truth bitcoin has no real value.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Bitcoin is engineered money; a revolutionary innovation. It's here to stay and will only increase in value over time.

I don't tell people to buy bitcoin. I suggest that they learn about it and come to their own conclusions.

Here's a starting point, for anyone genuinely interested:
https://youtu.be/YtFOxNbmD38?si=_e94F5L1-yBZLk3A

This presentation argues that **debased currency** is the root cause of modern societal issues, ranging from rising costs to family breakdown. Using a fictional parable of two leaders, the speaker contrasts a **fixed monetary system** with one controlled by a "big red button" that allows for endless money printing. The narrative explains how **government intervention** through currency expansion leads to distorted prices, lower product quality, and increased wealth inequality. This process ultimately forces businesses to cut corners and people to lose their **purchasing power**, creating a cycle of dependency on the state. The speaker identifies **Bitcoin** as the real-world equivalent of "perfect money" because it is decentralized and scarce. By adopting this **incorruptible standard**, he believes society can separate money from state control and restore global prosperity.

I've always found this to be a strange argument by crypto bros when Bitcoin only works (and barely, at that) because it is constantly printing new "money".

Eventually bitcoin will stop being generated i think at 21M coins?

We are at 19M but will take awhile to reach end.

Lost coins are a real problem: about 4% of coins are lost each year.

In 2026, the number of bitcoins lost each year is starting to outpace the number of new bitcoins being mined. This means the "effective" supply of Bitcoin is actually shrinking.

As a currency, a shrinking money supply.

It will come back. Its like land, they aren’t making any more of it!

[Anonymous]

It’s a purely speculative asset. Imagine if people paid money to participate in the equivalent of “hot potato”. I don’t know about this crash, but in the last crash 95% of buyers lost money.

That said, Bitcoin does this all the time. It’s almost a cycle at this point. Fall 50% and then rise 200%. I might get in at the bottom, say $60k