For what seems like forever but really has only been the last couple of years Bitcoin has been incredibly stable. Its movements both up and down were rather consistent and we really did not have the crazy volatility we had in the late 2010s and early 2020s. My oh my though how that has changed in just the last few days.
Over the last few months on of the key things Bitcoin had going for it was its store of value. However, this was getting trashed as gold and silver skyrocketed in price and Bitcoin stayed the same or even decreased a little. Once people began selling though the whole situation turned into a snowball rolling down a hill. It gained more and more steam as positions were liquidated creating more selling pressure and thus gaining more steam. We haven't see something like this since 2022.
In 2022 and now the cost to operate a miner and the price of Bitcoin is facing a gap of 20%. It is estimated that the cost is roughly $87k and with the cost falling as low as $61k that is a huge gap that is already showing signs of miners turning their systems off in an effort to stop the bleeding. It is one thing to mine and lose a couple of thousand but when it is $25k per BTC that is something that can take out a company in the short term.
It was wild yesterday looking at the charts and seeing BTC down over 10% when there wasn't some sort of bombshell news over someone trying to make it illegal or some sort of power issue it just tanked. Now today as I am writing this the price of BTC has recovered to almost $70k gaining roughly 10% but still mining companies are getting slaughtered running at full operation. Add in that this is Friday and weekends are already a time when BTC can move more due to liquidity decreasing and the next few days could be wild.
Is the selling really over or are we just witnessing a "dead cat bounce" in the market? Only time will tell.
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