Why is Bitcoin Tanking?
GM friends.
It’s looking bloody out there. Bitcoin is ripping south, and people are wondering why. Well, we’ve got some answers.
So pour that coffee and strap in, because this is your mid-week crypto update. ☕️📰
Here's what's in today's issue:
- David shares his thoughts on why Bitcoin is tanking, an update on BlackRock’s BUIDL, CZ getting 4 months in prison & bullish news for MilkyWay.
- Erik has an article on Bitcoin being used as a central bank reserve asset.
- In case you missed it by Rebecca.
Why is Bitcoin Tanking?
It’s been a rough week for bitcoin.
The pain started Tuesday when bitcoin decided to dump into the $50Ks, dropping 8% to $59,000. And Wednesday’s price action was more of the same, as bitcoin bled another 6%, hitting $56,400 at the time of this writing.
Zooming out, bitcoin dropped 17% in April, making this past month the worst since November of 2022 (i.e. FTX collapse), and breaking seven months of positive price action.
So what’s causing this short-term bearish price action, and where can we possibly expect to find the local bottom? Let’s discuss.
Sticky U.S. Inflation Numbers
One of the inflation measurements that the U.S. Federal Reserve keeps a close eye on is the personal consumption expenditures price (PCE) index. The PCE measures consumer spending
