..aaaand, we\u2019re back at it once more \u2014 a rebellious bitcoin price<\/a>. Sunday evening’s bitcoin flash-crash produced a red candle as colossal as Jupiter; and more intriguingly, it continued to fall on Monday morning, dipping below $111,000.<\/p>\n Now, here in the realm of bitcoin price therapy, we assert that nobody understands why prices<\/a> fluctuate. But at times<\/em>, we actually do\u2026 albeit not as comprehensively as we wish. Today, I\u2019ll explore two topics: the shenanigans of the previous 24 hours and Fed Chairman Jerome Powell\u2019s comments from late last week.<\/p>\n Late Sunday (European time) was quite vexing:<\/p>\n It\u2019s challenging to declare \u201cnobody knows\u201d when a chart resembles that; somebody<\/em> is aware of what caused the bitcoin price to plummet approximately 3,000 in mere minutes. If it\u2019s not a particular macro event<\/a>, akin to last week, the sole factor plowing through order books like this are a) massive<\/em> orders, and \u2014 equivalently \u2014 b) mass<\/em> liquidations.<\/p>\n Yesterday, there were hints of both:<\/p>\n or\u2026<\/p>\n This is an immature market, and it\u2019s astonishing how small we are and how illiquid the bitcoin market remains: still<\/em> susceptible to being influenced by individual market participants. (As is always the case in Bitcoinland, there\u2019s always some fool ready to turn<\/a> a verifiably bad<\/em> situation into a good<\/em> one.)<\/p>\n The 2.5% immediate drop in bitcoin price last night might be an isolated incident due to a whale selling or some liquidations, but the gradual, diagonal descent overnight and Monday morning (with bitcoin price collapsing below $111,000) is far more concerning. Dismiss the big, loud whale\u2026 what the heck is occurring? Why are we slowly failing<\/em> when we should be prospering, son!<\/em><\/p>\n All the macro indicators globally are pointing in the correct direction: Why is the bitcoin price trading down<\/em>, in this<\/em> zone, when any rational assessment would place it double or triple from this point\u2026? (And no, we didn\u2019t<\/em> drop below $111,000 as<\/em> or because<\/em> or in relation in any way to Metaplanet announcing purchases<\/a>).<\/p>\n Price behaves how it sees fit; shitcoins act freely.<\/p>\n Bitcoin price therapy undoubtedly<\/em> required: Bitcoin price behaves however it wants, disregarding reason or logical evaluation. Not a concern in the world for the most optimistic scenarios. Maximum agony, I\u2019ve heard it mentioned<\/strong>. Not even Saylor\u2019s million-dollar-cost averaging made a significant impact:<\/p>\n One of these mystical tea leaves reading methods (128-day moving average), informs us our Bitcoin Magazine Pro team<\/a> today, stands at $108,500\u2026 so we\u2019ll likely reach there. Saylor et al<\/a> have already partaken of their kidneys and chairs, so I ponder what remains.<\/p>\n More intriguing\/daunting is that it continues to decline afterward, reaching new lows. Our most scoop-like explanation is that all of these shitcoins \u2014 managed by Mr. Bailey, the owner of BTC Inc, who recently torched about $41 million \u2014 gobbling up these coins during the spring couldn’t retain them and are now regurgitating them; some, in liquidation-laden red candles, and others in slow, grinding, time-weighted pricing.<\/p>\n A certain Cypherpunk OG appears conscious of the structure:<\/p>\n have they not heard of TWAPs? do they not like money? such clumsy market activity. normally people with that kind of money would be smarter.<\/p>\n \u2014 Adam Back (@adam3us) August 25, 2025<\/a><\/p><\/blockquote>\n <\/div>\n<\/figure>\n Occasionally, we actually (sort of) do<\/em> grasp what transpired in markets \u2014 like last week, Aug 22, at 10 am Eastern: Posted on the Fed’s website was the statement\/upgrade to the Fed\u2019s monetary policy framework<\/a>. It was broadly interpreted as a potential easing of monetary policy anticipated. How<\/em> do we know this? Because every (hard) asset surged immediately, and the dollar index dipped<\/em>:<\/p>\n This is the type of occurrence that impacts markets, and the instant<\/em>, significant changes give us confidence that THIS is the trigger.<\/p>\n (for reference: 9.59, DXY = 98.7; two minutes later, 98.15; another minute, 97.8. That\u2019s 1%, in a blink\u2026 That\u2019s a significant move for the DXY!)<\/p>\n Now we\u2019ve identified the origin \u2014 Powell\u2019s speech and\/or the release of the statement. Which<\/em> aspect of his statement caused such a stir in markets?<\/p>\n What transpires during releases like this \u2014 or inflation figures or unemployment by BLS \u2014 is that straightforward trading algorithms scan the websites for immediate updates and make instantaneous evaluations, often with delayed trading consequences following. The move itself frequently reverses ten, twenty, thirty minutes later when human and wise assessments have been engaged. It was all a nothingburger, after all.\u00a0<\/em>That wasn\u2019t the scenario this time, as the bitcoin price traded highly over the weekend (until someone spoiled the fun on Sunday\u2026).<\/p>\n Powell\u2019s comments last week indicated that<\/p>\n \u201cIn the near term, risks to inflation are inclined to the upside, and risks to employment to the downside \u2014 a challenging situation\u201d\u00a0<\/p>\n<\/blockquote>\n However, Powell concluded that those risks \u201cmight justify altering our policy position.\u201d<\/p>\n In the minutes and hours following the speech and the statement\u2019s release, bitcoin price peaked at $117,000, before retracting to $116,000; that\u2019s market participants examining and interpreting, organically, what this new landscape signifies.<\/p>\n All in all quite disheartening. We need Bitcoiners thriving and flourishing, not impoverished and upset.<\/p>\n Bitcoin price therapy concluded. See you all in Hong Kong<\/a> for Bitcoin Asia<\/a>.<\/p>\n<\/p><\/div>\nA Turbulent Bitcoin Price<\/h2>\n
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Bitcoin Price and Powell\u2019s Commentary<\/h2>\n
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