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⚡Bitcoin Price Drop to 41k🚬

Croxroad

13 Dec 2023 — 4 min read

☕️ GM Dear Plebs!

Here is Crox Road, your daily dose of orange pill that will turn you into a Bitcoin Maxi.

The menu for today:

🔽 BTC Price Decline

The recent drop in Bitcoin's price, with investors selling off 40,000 BTC in a week, could pave the way for a potential accumulation phase. Despite a mild recovery, Bitcoin remains under $42,000. The prospect of accumulation is heightened as BTC is trading at a lower price before the anticipated approval of a spot ETF. This presents an opportunity for investors to replenish their holdings after the substantial $1.6 billion worth of BTC sold in the past week.

While the recent market correction was triggered by both retail and whale selling, the current market conditions suggest a shift from selling to buying. The on-chain metrics, such as the Market Value to Realised Value (MVRV) ratio, indicate an opportune moment for accumulation. The 30-day MVRV ratio, sitting at -3.79%, suggests that recent BTC investors are at a 3.79% loss on average, creating a favourable environment for accumulation.

As Bitcoin hovers around $41,770, its struggle to surpass $42,000 is notable. The US Consumer Price Index (CPI) data, showing a decline in inflation to 3.1% in November, adds complexity. This might keep BTC below $41,000, and a dip below $40,000 could further delay recovery. On the flip side, a bullish push above $42,000 could invalidate the bearish outlook and open the door for Bitcoin to reclaim $44,000.

🤐 Satoshi Nakamoto's 13-Year Silence

Thirteen years ago, Satoshi Nakamoto, the mysterious creator of Bitcoin, shared his last message on the Bitcointalk forum. In a seemingly ordinary post about preventing denial-of-service attacks on April 26, 2010, Satoshi quietly exited the stage, unknowingly leaving behind a digital currency and a community that would surpass all expectations.

Satoshi's final forum post wasn't a farewell; instead, it focused on reinforcing Bitcoin's resilience against DoS attacks. In 2014, the Satoshi narrative took an intriguing turn when a message appeared on a P2P Foundation profile linked to him, stating, "I am not Dorian Nakamoto." This cryptic re-emergence stirred speculation about its authenticity and the underlying motives.

Theories surrounding Satoshi's disappearance abound. Was it a strategic move to preserve Bitcoin's decentralised ethos, or did concerns about privacy, security, or legal issues in the uncharted digital currency realm prompt this vanishing act? The possibility remains that "Satoshi Nakamoto" was always intended as a pseudonym, masking the identity of an individual or a group preferring shadows over the spotlight.

Regardless, Satoshi's enigmatic departure has allowed Bitcoin to thrive as a decentralised, community-driven project, perpetuating the legacy of its elusive creator.

💵 An Alternative To Fiat Currency

Nakamoto who came up with bitcoin as a kind of alternative to regular money. The cool idea was that one day, everyone around the world could use it to buy stuff and pay for services, just like we use dollars, euros, or whatever.

But, here's the catch - using bitcoin for everyday purchases has hit a bit of a roadblock. You know how prices for things can change a bit, like the cost of a cup of coffee? Well, with bitcoin, it's like that on steroids. It can swing up and down a lot, even within a single day. Imagine you pay $3.50 for your coffee, and five minutes later, it's worth $4.30. That's not very convenient, right?

And it's not just a hassle for buyers; it's a headache for sellers too. Imagine a shop owner getting bitcoin for a product and then the price of bitcoin suddenly drops. It's not a great deal for them.

Here's the twist: Bitcoin doesn't play by the same rules as regular money. It doesn't have a big boss (like a central bank) controlling it, there's only a limited amount of it (you can't just make more whenever), and you can't really predict what its price will be tomorrow. Understanding these quirks is the key to getting how bitcoin works.