THE CRYPTO GOSSIP OF THE DAY:
Why is Bitcoin Falling?
Look, it's super simple. Bitcoin is not falling because it's "broken" or because the technology failed. It's falling because of an office gossip... the Office of the largest bank in the world, the Federal Reserve (Fed) of the U.S.!
Imagine this: You have your money and you can put it in two places:
* Bitcoin: It’s the Roller Coaster. Lots of excitement, you can win a lot, but it’s risky.
* Government Bonds ("Safe" Money): It’s the couch. Boring, but safe.
The Secret News that Scares Everyone
The Fed had the (almost) promise of lowering interest rates soon. When rates go down, safe money (The Couch) stops yielding good returns. What do you do? You take your money out of the couch and put it on the roller coaster (Bitcoin) to earn more. This makes Bitcoin go up!
But now, the rumor is that the Fed is NOT going to lower rates as quickly as we thought. Ouch!
The Market Reaction (and Your Pocket)
If the couch (safe money) continues to yield good returns, the big investors say: Why risk it in Bitcoin? I’ll leave my money here, where it’s safe and continues to pay well.
When the big players pull out their money, Bitcoin falls. It’s simple: If the safe pays, the risky suffers a bit. #BTC
