The title comes from an article on Forbes today. The basic idea from the article is:
Bitcoin has swung wildly after robust U.S. jobs data sapped expectations of Federal Reserve interest rate cuts and sent stock markets spiraling. "Bitcoin’s retreat to below $93,000 highlights the growing influence of macro conditions," analysts from Ryze Labs wrote in an emailed note. "Liquidations totaled over $1 billion this week, with long positions accounting for the majority as traders were forced to unwind leveraged bets."
Two thoughts come to mind when I read articles like this. The first is that as Bitcoin matures, it becomes more tied to other financial news. More accurately, as Bitcoin becomes more entangled with traditional investments and investors, it behaves more like traditional investments.
This first point leads to my second thought, that a drop from 103,000 to 93,000 is now considered a big deal. While, I agree I don't want anything I own to drop almost 10 percent, this is a relatively tame drop in the history of BTC. Remember, BTC has fallen 99 percent in one day (after the Mt Gox hacker announcement in June 2011.) Even more recently, in the last five years, BTC has dropped 50 percent in two days (March 2020) and 53 percent in one week (May 2011.) So, as we see news like this coming out, it is important to look at long term trends, the original point of crypto and that even if it is now considered a traditional investment, it is not traditional.