FVyJEqMn9kS68lvciM83 on Nostr: It is unknown to what extent the decline in the Bitcoin in 2022 was caused by ...
It is unknown to what extent the decline in the Bitcoin in 2022 was caused by interest rate changes. If it was due to capital outflows from the crypto market, the overall Bitcoin balance in exchanges should have increased as people sold their Bitcoin for USD. However, the actual Bitcoin balance declined in 2022, indicating that more funds were used to purchase and withdraw Bitcoin from exchanges. Therefore, in my view, interest rate changes causing capital outflows was only one of the factors, probably minor one. The main reason for the market decline was the fraudulent actions of exchanges and some large hedge funds that printed and sold hundreds of thousands of Bitcoin and short the whole market.
Published at
2023-02-10 07:52:12Event JSON
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"content": "It is unknown to what extent the decline in the Bitcoin in 2022 was caused by interest rate changes. If it was due to capital outflows from the crypto market, the overall Bitcoin balance in exchanges should have increased as people sold their Bitcoin for USD. However, the actual Bitcoin balance declined in 2022, indicating that more funds were used to purchase and withdraw Bitcoin from exchanges. Therefore, in my view, interest rate changes causing capital outflows was only one of the factors, probably minor one. The main reason for the market decline was the fraudulent actions of exchanges and some large hedge funds that printed and sold hundreds of thousands of Bitcoin and short the whole market.",
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