A couple things:

1. Every 10 minutes, 6.25 new Bitcoin are produced which must be sold onto the market to cover mining costs. That means if there isn’t sufficient demand at a certain price for those new Bitcoins, supply will correct downwards. Bitcoin is a highly liquid market and this isn’t the main driver by any stretch, but my point is just that you still need demand to maintain price.

2. Many people who own Bitcoin are still Wall Street trader types who legitimately don’t understand what they own. They still see it as a tech stock and think “hawkish fed means dump”.

3. If economic conditions really do get bad enough (high unemployment) then many people may have trouble finding USD which they can use to buy Bitcoin. Along with increasing crackdowns on on/off ramps, this is still an issue for many. Until we are in a Bitcoin denominated world, people will still need to service dollar debts and payments and will therefore need to sell to the “safety” of the dollar from time to time.

In todays case though, I speculate that it’s just a simple example of the market flushing out longs. We were in “fuck you banks” euphoria mode and I’m sure some bozos leveraged up at 29k and now need to be liquidated before we can resume moving higher.

After saying all that, just stay humble and stack sats 🫡