• Bitcoin’s 30k plunge – short-term holders sell off BTC, long-term holders unfazed
• Fed balance sheet declines for fourth consecutive week – down $141B
• 20k BTC re-enters exchanges following largest Bitcoin long liquidation event this year
Bitcoin Price Plunge
Bitcoin recently experienced a 30k plunge as short-term holders sold off their holdings. Long-term holders were not affected by the drop, staying strong and unfazed.
Fed Balance Sheet Declines
The Federal Reserve’s balance sheet has dropped for the fourth consecutive week, with a reduction of $141 billion. This is due to quantitative tightening which is causing liquidity to be drained from the system, as the Fed attempts to tackle inflation.
20K BTC Re-Entering Exchanges
As a result of the largest Bitcoin long liquidation event this year, 20kBTC re-entered exchanges. The event took place on April 19th and was one of the biggest ones in 2023 so far.
Central Bank Dilemma: Inflation + Stagflation
In today’s economy, central banks are dealing with an unprecedented dilemma regarding inflation and stagflation that could only have been solved through cryptocurrency response.
The cryptocurrency response to this dilemma remains uncertain with no concrete solution yet devised. It will take time before any potential solutions become clear, but it certainly has investors around the world paying close attention to developments in this space.