Why is Bitcoin DOWN right now?

Why is Bitcoin down right now? The truth
is nobody really knows. But also that’s
actually normal that oftent times for
the best performing assets in the world,
it’s not 100% clear why the stock market
or the precious metals market or Bitcoin
is doing exactly what it’s doing. I’ll
tell you in a minute how you can find
out or at least make a best guess. But
if you look at the 10 best performing
assets, 10 best performing assets in the
last 10 years, that is the magnificent
seven stocks, which is Apple, Amazon,
Tesla, Google, Facebook, Nvidia, and one
more that I’m forgetting. You can Google
it. Magnificent seven stocks. Those
seven stocks plus gold and silver plus
Bitcoin. So two precious metals, gold
and silver, one bitcoin and seven of the
best performing stocks which is called
the magnificent seven. If you look at
those 10 assets, seven stocks, two
precious metals and one digital
commodity, Bitcoin, which is money. If
you look at those over the last 10
years, there will be long periods of
months or even years for each of those
assets why where it’s not exactly clear
why the stock price is doing what it’s
doing. Now with some of those assets it
is clear um you know the the the price
will move based on the you know a an
earnings report where Tesla will blow
out the profit as compared to what
everybody expected and the stock goes up
because they blew out the profit. uh the
or you know any one of those companies
can repo report earnings that are much
more favorable than anticipated and the
stock price goes up or recently you’ve
you’ve seen the price of gold run up
because central banks are trying to get
off of the US dollar as a reserve
currency and they’re buying gold
instead. So we know why gold is up
because central banks don’t trust their
own currency. So instead of compi
instead of stockpiling their own
currencies they’re stockpiling gold.
This is all the countries, Japan, China
and all that. Instead of buying US
treasury bills and US government debt
and US dollars with their currency as a
reserve asset, they are buying gold
instead. Which tells you everything you
should need to know about what central
banks think about fiat currency, which
is government madeup currency. Given the
choice between buying someone else’s
government fiat currency and buying
gold, central banks are buying gold.
Now, one day they’ll be buying Bitcoin,
but Bitcoin is still too new and still
too small for most central banks. They
just can’t buy Bitcoin in the tens of
billions of dollars, you know, at a time
in a given day. The liquidity is not
deep enough. The asset, you know, as the
total size of the asset is just too
small and it’s just too new. They’re
just not comfortable with it. But again,
so sometimes, you know, with the
magnificent seven stocks with gold, with
silver, or with Bitcoin, sometimes you
know exactly why the price is doing what
it’s doing, but oftentimes you don’t.
And in the times you don’t, the best
thing you can do is just Google the
asset. If you Google the word Bitcoin,
you’ll see news headlines. And sometimes
those news headlines from credible news
organizations will give you some
insights into why the price is doing
what it’s doing. Same with gold, same
with silver, same with the magnificent
seven stocks. If you Google Tesla or if
you Google Amazon stock or, you know,
whatever, you will get some news
headlines that indicate why it’s doing
what it’s doing. Or if you go in the
stocks app, uh, S O CKS, the stocks app,
uh, in your iPhone or your Android
phone, and you look up gold or silver or
one of the Magnificent Seven stocks or
Bitcoin, it will give you news feeds
that tell you headlines and you can read
the articles about why each of those
assets is doing what it’s doing. So
sometimes, you know, but sometimes you
don’t. Even when you do that, even if
you go on Twitter and you follow all the
people that you know are constantly
tweeting about gold or silver or Bitcoin
or Amazon or Microsoft or Tesla stock,
whatever, often times you will go on
there and it’s still not clear. So even
with Google, even with Twitter and even
if you go on, there’s always YouTube
videos where people are pretending to
have, you know, special insight into why
any asset is up or down. Um, and you can
ask chat GPT or any other AI engine like
Grock. You can just say, “Hey, why is
the Bitcoin price up or down?” And it’ll
give you a a solid good reason of why
why it thinks based on everything that’s
read on the internet why the price is up
or down. So sometimes you know, and
sometimes but sometimes you don’t.
Sometimes for weeks, months, or even
years at a time, it will just not be
clear why a stock is languishing even
though the fundamentals of that stock
are the strongest they’ve ever been. And
Bitcoin’s in one of that uh those places
for the last couple months. For the last
couple months, Bitcoin has been below
its all-time high. Right now, it is 30%
below its all-time high. And if you look
at Google and Twitter and YouTube and
chat GPT, it will say a bunch of things.
Global liquidity is really tight right
now. The amount of debt in the system
compared to the amount of dollars to pay
it off is not in favor of people paying
off their debts. So, what do people do
when they’re tight and they’re trying to
save their house, they’re trying to save
their car, they’re trying to save their
business? They sell the assets they can,
not necessarily the ones they want to.
So, there are people getting liquidated
on Bitcoin because they’re being forced
to sell it to save a business. And they
didn’t think that was going to happen,
but when that happens, it pushes the
price of Bitcoin down. So, there’s a lot
of people trying to bail themselves out
right now with whichever assets they
have. And Bitcoin is an asset they have
and it’s appreciated substantially and
therefore they’re selling some to try to
save whatever it is they’re trying to
save foreclosure on their house or
whatever it is. US government is
lowering interest rates which prints
more money. The Bank of Japan is raising
interest rates. There’s this thing
called the yen carry trade. A lot of
people have been borrowing u uh uh
Japanese yen, converting them to
dollars, investing in the stock market
and in other things, gold, silver,
bitcoin, everything. And that only works
if the interest rates in Japan are way
less than the interest rates in the
United States. As soon as those interest
rates are not less, the whole thing
starts to unwind. Well, Japan’s interest
rates are climbing while the US interest
rates are dropping, which is putting the
squeeze on people doing that carry
trade. So, that’s part of the reason.
Uh, also, there’s a lot of people that
just chase momentum. So, whatever is
going that fastest is what they invest
in. It’s a bad way to try to make money
because you always end up investing in
things when they’re high and then
selling them when they’re crashed out
and low. But anyway, so a lot of money
is chasing AI with companies like
Nvidia. A lot of money come uh a lot of
money is chasing gold and silver right
now because those prices are on a tear
and it pulls money out of Bitcoin. Even
if Bitcoin is the better asset, people
look at their options and they say,
“Hey, gold and silver are moving.
Bitcoin is not moving. I’ll just chase
that.” Again, bad long-term strategy.
people lose, you know, huge amounts of
money chasing momentum like that because
you you end up investing in the wrong
things at the wrong times and selling
the right things at the wrong times to,
you know, to chase something that’s got
momentum. And as soon as, you know,
Bitcoin has momentum again, they’ll all
come piling back in and it’ll drive the
price way higher. But, you know, we got
to be patient and stuff like that takes
time. Uh, so anyway, if you research a
million different things, you’ll find a
million different reasons why Bitcoin’s
price is doing what it’s doing. At the
end of the day, what matters is
fundamentals. It is the foundest money.
It is the most divisible, durable,
portable, fungeable, authenticatable,
and scarce thing that exists in the
universe. Those are the ideal properties
of money. Bitcoin is the ideal money or
it’s the ideal digital property if you
follow Michael Sailor and his thesis on
that. And regardless, eventually it will
be in much much much infinitely much
higher demand than it is right now. And
the price will eventually reflect that.
In the meantime, same advice as always.
Buy as much Bitcoin as you can. Hold on
to it for as long as conceivably
possible. Sometimes we know why things
are on sale. Sometimes we don’t. If it’s
a solid asset, buy as much of it as you
can regardless. That advice doesn’t
change. And it’s the same advice that
I’ve been giving everyone forever. Buy
as much as you can. Hold on to it for as
long as conceivably possible.