- The BTC/USD market has done very little during the trading session on Thursday as we continue to hang around and try to figure out whether the FTX fraud is going to continue to cause contagion in the crypto markets.
- After all, there are a lot of people out there wondering whether or not things are going to get actively worse.
- Genesis has just shut down redemptions for at least 5 days, so it’s likely that we have a scenario in that people still worry about the next shoe to fall, and I do think that it’s coming.
The $18,000 level above had been previous support, and now should offer a certain amount of resistance based upon “market memory.” Ultimately, I think this is a situation where we will have a lot of problems, and Bitcoin is simply going to be a proxy for all of the fraud and nonsense that has been going on. Furthermore, Bitcoin has a major issue with the fact that there has been very little in the way of adoption. For years now, we have been hearing a lot of noise about how Bitcoin was growing by leaps and bounds, but it is still very tiny in its actual real-world case-use scenario. Quite frankly, it’s less likely that you will be able to use Bitcoin now than previously due to the fact that it has been so volatile. In other words, there’s no way that it can be used as money in its current form.
I’m not Interested in Buying Bitcoin
The reason I say this is that even though the Lightning Network makes payment transfers much quicker, the reality is that you could accept payment in Bitcoin, and have it lose 7% of its value in just a few hours. That’s not money, and it’s certainly not something that people will be willing to take, with the exception of course of the true believers.
This is not to say that Bitcoin won’t eventually take off to the outside again, but I think we have a lot of things to work through in the short term. In fact, it’s very likely that we would see the $12,000 level tested, and then eventually the $10,000 level. Ultimately, I have no interest in buying Bitcoin unless the Federal Reserve explicitly comes out and says that it is going to loosen monetary policy.
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