Bitcoin’s true value lies not in short-term price fluctuations; like a ship sailing the ocean, its true essence lies in its “utility.”
What is Arthur Hayes’s truth in a market engulfed in a whirlpool of liquidity?
Bullish announced record Q3 profits, but why does its stock price continue to fall?
The 10-year model suggests Bitcoin at $100,000 is the time to buy, and the magic of time lies behind it.
Former President Trump publicly declares his desire to fire Fed Chairman Powell, spreading ripples through monetary policy.
Let’s analyze the news on the global economy and cryptocurrencies and consider economic trends together! Today, on Wednesday, November 19th, we’ll discuss today’s cryptocurrency news and on-chain market conditions. Let’s take a look at 24-hour data headlines from the cryptocurrency market.
Let’s start with the words of Bitwise’s Chief Investment Officer (CIO): “Bitcoin’s value is rooted in its utility, not short-term price declines.”
While Bitcoin is often at the mercy of price fluctuations, Bitwise’s CIO likens it to “a sure lighthouse in the storm.” In other words, it’s Bitcoin’s fundamental utility, not its immediate turbulence, that serves as a lighthouse for investors.
This trend is driven by factors such as its convenience as a payment method and the reliability of blockchain technology. Bitcoin has maintained a large following even after major price corrections in the past. This makes it truly like a “ship weathering the rough seas of the market.”
What this event demonstrates is that “Bitcoin’s true value lies not in short-term price fluctuations, but in its sustainable utility.”
Next, former BitMEX CEO Arthur Hayes believes that “Bitcoin’s price decline is due to a lack of liquidity.”
Hayes described the market-shaking movement as “a liquidity crisis, like a traveler searching for water in the desert.” The drying up of funds and increased selling pressure led to a temporary sharp drop.
The underlying factors behind this include the deterioration of cash flow and credit contraction among financial institutions and large investors. Similar liquidity shocks have been observed in the past, during market corrections in 2018 and 2020, leading to recoveries each time. Market participants remain cautiously hopeful of a recovery.
The essence of this event is that the sudden drop in market prices is due to temporary environmental factors, namely a lack of liquidity.
Next, we have news that Bullish’s stock price continues to fall despite recording record third-quarter profits.
This situation is like a bountiful orchard enjoying a bumper harvest, but the market’s winds are cold. Even though corporate performance itself is strong, stock prices continue to fall due to overall market sentiment and macroeconomic factors.
Rising interest rates and concerns about a global economic slowdown are particularly weighing on investor sentiment. Similar discrepancies between strong earnings and stock prices are also occurring in other sectors, underlying the overall market uncertainty.
What this event demonstrates is that corporate performance and stock price trends are not necessarily linked, but are instead influenced by market sentiment and the macroeconomic environment.
Furthermore, a 10-year model analysis has suggested that Bitcoin at $100,000 is a good time to buy.
This model can be described as the “barrel of time” slowly supporting price formation. Based on data from the past 10 years, this model transcends market noise and suggests long-term value formation. Time is what nurtures the fruits of price growth.
This model has also reaffirmed to market participants the importance of focusing on the long-term outlook rather than short-term fluctuations. Some experts see it as a “compass to weather the storms of investor sentiment.”
What this event demonstrates is that a long-term perspective and the passage of time are the keys to successful Bitcoin investment.
Finally, there is the news that former President Donald Trump expressed his intention to fire Federal Reserve Chairman Jerome Powell.
This is truly a “major construction project to change the course of the great river of monetary policy.” The position of Federal Reserve Chairman exerts influence not only on the U.S. economy but also on global financial markets, so these remarks have sent ripples through market sentiment.
Trump’s repeated comments, fueled by his dissatisfaction with interest rate hikes, have led market participants to pay even greater attention to monetary policy. However, no concrete action has been taken to date. We will continue to closely monitor the intertwining of politics and monetary policy.
The essence of this incident is that a single political statement can create uncertainty and tension in financial markets.
These five news stories have each reflected the cryptocurrency market and the global economy from a different angle. There are three important signals underlying these changes.
First, market participants have not lost faith in Bitcoin’s practical utility and long-term value creation. This serves as a stable lighthouse.
Second, while temporary liquidity shortages and macroeconomic conditions may cause short-term turbulence, these are challenges that have been overcome in the past.
Third, political comments and increased attention to monetary policy have created tension and uncertainty in the market, which requires continued careful monitoring.
Today’s news was like the seasonal winds blowing through the “vast economic forest.” Each wind individually blows from a different direction, but collectively, investors and market participants need to be adaptable and insightful, just like with natural changes.
That’s the gist of today’s news. If you find this channel valuable, please share, follow, and turn on notifications.
And—what do you think of these market movements?
Please let me know in the comments.
See you tomorrow.
