Bitcoin’s WILD Ride – But Did The Bull Case Actually Vanish?
Enter: Kevin Warsh
After a relatively steady January where Bitcoin (CRYPTO: BTC) outperformed traditional safe-havens like gold, toward the end of the month, Bitcoin started to face significant weakness. This volatility skyrocketed over the past week, but why? Did anything fundamentally change with Bitcoin?
Starting from its Jan 30th close near $82,000 (right after Kevin Warsh was nominated as Fed chairman), Bitcoin would end up plunging over 25% into yesterday’s close on Thursday and show the most oversold levels since 2018.
Several factors likely contributed to the move:
- Kevin Warsh’s nomination reinforced hawkish expectations
- The 10-year Treasury yield rose to 4.35%, strengthening the dollar
- Soft labor data increased recession concerns
- Correlated selling in risk assets like $IGV
- A cascade of leverage-driven liquidations in crypto markets
Importantly, none of these altered Bitcoin’s underlying mechanics.
But did anything fundamentally change with Bitcoin’s bull case?
Our opinion: not at all. This dip was for buying, not selling.
Bitcoin’s wild ride since the end of January.
A Dove in Disguise?
Kevin Warsh has surely been a Fed critic and generally a hawk in his private life. …
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