Bitcoin has ‘largely purged’ froth that preceded 50% drop from $126K: BlackRock

[Oshosondy]

I think this is a good report, but it is what we know before. I am not referring to the liquidation part, but about bitcoin volatility and what could possibly happen later.

This is the report: https://www.blackrock.com/us/financial-professionals/literature/whitepaper/re-underwriting-bitcoin.pdf

According to the site that I read it from, these are the important things:

A BlackRock report attributes Bitcoin’s decline below $60,000 to cascading liquidations as leverage was purged from the market.
The long-term BTC investment thesis as a “low-correlation diversifier” remains intact, analysts confirm.
BlackRock sees Bitcoin’s risk-asset correlation declining as time goes on.

I think if bitcoin can go not more than 50%, it is a very good asset. We have also discussed how bitcoin volatility has been reducing in each 4 year cycle on this forum many times.

I hope some people will not see it too late before buying bitcoin.

[philipma1957]

I think this is a good report, but it is what we know before. I am not referring to the liquidation part, but about bitcoin volatility and what could possibly happen later.

This is the report: https://www.blackrock.com/us/financial-professionals/literature/whitepaper/re-underwriting-bitcoin.pdf

According to the site that I read it from, these are the important things:

A BlackRock report attributes Bitcoin’s decline below $60,000 to cascading liquidations as leverage was purged from the market.
The long-term BTC investment thesis as a “low-correlation diversifier” remains intact, analysts confirm.
BlackRock sees Bitcoin’s risk-asset correlation declining as time goes on.

I think if bitcoin can go not more than 50%, it is a very good asset. We have also discussed how bitcoin volatility has been reducing in each 4 year cycle on this forum many times.

I hope some people will not see it too late before buying bitcoin.

yeah dca is a good idea at the moment.

adding 0.001 a week is a good goal

[Zaguru12]

I think if bitcoin can go not more than 50%, it is a very good asset. We have also discussed how bitcoin volatility has been reducing in each 4 year cycle on this forum many times.

I hope some people will not see it too late before buying bitcoin.

It’s simply easy to notice that volatility is pretty much reducing at the as the cycle comes or should I simply say as the bitcoin mining diminishes, in the past it’s pretty easy to actually see bitcoin go down to nearly 80% of its all time high and also easily does a 6x or more in the bullish period but right now I think that’s almost improbable to see in a 4 year cycle period. The reason for this volatility reduction has been having linked to the fact that the market cap of bitcoin is growing which is right but this isn’t all about it to me.

I feel like volatility is reducing also because we now have more investors who are very confident in holding unlike in the past where a little news can shake the market. Take for example the war in Iran and also the most recent hardware wallet vulnerability saga, previous cycles ago this would have plummeted the price in the days of this news. But now we have what we call strong holders with most been the ETF investors or whales with also retail investors growing in confidence about bitcoin long term plans

[_act_]

It’s simply easy to notice that volatility is pretty much reducing at the as the cycle comes or should I simply say as the bitcoin mining diminishes, in the past it’s pretty easy to actually see bitcoin go down to nearly 80% of its all time high and also easily does a 6x or more in the bullish period but right now I think that’s almost improbable to see in a 4 year cycle period. The reason for this volatility reduction has been having linked to the fact that the market cap of bitcoin is growing which is right but this isn’t all about it to me.

It is easy to know that bitcoin is down just 50% this time and that bitcoin is not reducing as it did before as usual. It is easy to know to you and to people on this forum and probably other bitcoin forums and some other forums and to people that know understand what bitcoin is, but not everyone understands what bitcoin is. Some people will start making research or just believe what Blackrock says.

By the way, what caused the sharp bitcoin price that increased recently? It increased adding over $5000 to its price.

[Zaguru12]

By the way, what caused the sharp bitcoin price that increased recently? It increased adding over $5000 to its price.

Yes it’s really surprising because that’s a whole 8% pump in the last 24 hours, this kind of pump of recent can take few days to come,

Not really any significant news around just read some random news around some crypto meeting in the White House. With few rumors that trump actually signaled buy to its truth social VIP members. Plus the recent increase buys by US ETFs in the last two days. And then news around strait of Hormuz again.

Personally I don’t usually believe this news have that much impact on the market and one thing though I read is that the US dollars is dumping and this is the most significant reason for such a good pump like this. Because the bitcoin pair with the most of this dollar pegged stablecoin like usdt will definitely increase.

But regardless I think bitcoin was actually bound to increase after weeks of market consolidation

[Free Market Capitalist]

Man, if that were the case, it would be good news. If the bottom of this bear market really were $58K, it would be the best bottom in percentage terms, but we have to remember that the high wasn't anything to write home about either. Maybe volatility has simply decreased.

By the way, the price is up almost 6% today. I looked into why, and this is what I found:

Bitcoin Surges Most Since March Ahead of White House Meeting

[d5000]

It is interesting that BlackRock mentions the reduced correlation with other risk assets during longer timeframes. I think they are correct with that: while small short-term movements seem often to react to events like Fed meetings, interest rate changes, or strong stock market movements, the longer term dynamic is often different. That's why the 2025-26 bear market was totally unrelated to the stock market in the same period for example.

Maybe if the AI bubble bursts that could mean a chance instead of a danger for Bitcoin? SpaceX's Starmind plans are imo a potential "bubble indicator", a company goes totally nuts about some very recent and emerging technology. If AI stocks correct without driving the whole economy down, then a part of the liquidity could shift to Bitcoin, and we could dream of 100k+ again.

By the way, what caused the sharp bitcoin price that increased recently? It increased adding over $5000 to its price.

Seems it was a classic short squeeze. The bulls won the race for 65,000$ and there were many shorts in that area which got liquidated. The White House meeting FMC mentioned could be an element that improved sentiment, but for me the reason is more related to the "signs of strength" the Bitcoin price has shown in the past weeks, when even the Coldcard hack wasn't able to break 60k again (not even 62k was reached ...).

I quote an image from the German subforum (maybe used also in other threads, idk):

It's easy to see the liquidity in the 65-67k area that got liquidated.

[AakZaki]

Man, if that were the case, it would be good news. If the bottom of this bear market really were $58K, it would be the best bottom in percentage terms, but we have to remember that the high wasn't anything to write home about either. Maybe volatility has simply decreased.

By the way, the price is up almost 6% today. I looked into why, and this is what I found:

Bitcoin Surges Most Since March Ahead of White House Meeting

Oooh... I didn't realize that there would be that good news related to Crypto today, because I myself had bought BTC yesterday since the beginning of the confirmed bullish mid term, precisely on August 18 at 12.00 UTC.

Since the mid-term bull was confirmed, I bought it with a 5% sell target and executed. It's unfortunate actually, because the price is up about 8% today.

But I'm not too greedy to make a buyback, because I think the price of Bitcoin is currently overbought, and by Friday which sometimes in that day there is a decline.
My current consideration is buying it again when the dip comes again.

[Pi-network314159]

I think if bitcoin can go not more than 50%, it is a very good asset. We have also discussed how bitcoin volatility has been reducing in each 4 year cycle on this forum many times.

I hope some people will not see it too late before buying bitcoin.

Yeah, afterall Bitcoin went from previous ATH of $69k to $15k which was around %75 drop, so if Bitcoin drop below %50 this season before it recovers it not the first time. But I don't wish it goes below this level. There are already green light which indicates that we may not go below this, looking at the market you will notice a push today heading towards $70k I hope we see more higher price as to break free from this resistance.

[BitMaxz]

Yeah, afterall Bitcoin went from previous ATH of $69k to $15k which was around %75 drop, so if Bitcoin drop below %50 this season before it recovers it not the first time. But I don't wish it goes below this level. There are already green light which indicates that we may not go below this, looking at the market you will notice a push today heading towards $70k I hope we see more higher price as to break free from this resistance.

I think you have a short-term view, but yes, we are currently in the green, but have you checked the chart in the daily time frame?
If you compared this previous quarter's 1st and 2nd, there's a high probability it can repeat itself again, and it's too early to say that the price will continuously pump up. We are still bearish in a daily view, and this might be just a retracement before it drops again.

My perspective will only change once the $83k is broken from the previous higher low in a weekly or daily time frame. That's the only resistance to validating the trend changes.
For now, this might be a bull trap; we've seen a huge pump and eaten all liquidity above. I know there are many people who will chase this, but this isn't a good entry. A pullback or retrace is always the best position to drop down your risk and increase the potential profit compared to chasing the top.

[JiiBs]

The long-term BTC investment thesis as a “low-correlation diversifier” remains intact, analysts confirm.
BlackRock sees Bitcoin’s risk-asset correlation declining as time goes on.

I think if bitcoin can go not more than 50%, it is a very good asset. We have also discussed how bitcoin volatility has been reducing in each 4 year cycle on this forum many times.

I hope some people will not see it too late before buying bitcoin.

There would always be those that would be late to invest and possibly, a lot of investors that started investing a year ago or in the last cycle would always entertain ideas that gives them the impression to have being late on the investment since they didn’t buy Bitcoin below $1k. Time and Bitcoin price would eventually prove otherwise though.

What’s worth noting from this report is how these giant corporations are coming to terms with what Bitcoin has being able to archive in the space as an investment, not being dependent on other assets and as a stand alone asset which shouldn’t be what investors would buy and sell in high or low risk situations just to maximize profit.

yeah dca is a good idea at the moment.

adding 0.001 a week is a good goal

DCA has always being a well to do investment strategy and quite frankly, 0.001BTC is fair, at least for those that such amount doesn’t measure up to 20% of their income within the same time frame.

[savetheFORUM]

I think this is a good report, but it is what we know before. I am not referring to the liquidation part, but about bitcoin volatility and what could possibly happen later.

This is the report: https://www.blackrock.com/us/financial-professionals/literature/whitepaper/re-underwriting-bitcoin.pdf

According to the site that I read it from, these are the important things:

A BlackRock report attributes Bitcoin’s decline below $60,000 to cascading liquidations as leverage was purged from the market.
The long-term BTC investment thesis as a “low-correlation diversifier” remains intact, analysts confirm.
BlackRock sees Bitcoin’s risk-asset correlation declining as time goes on.

I think if bitcoin can go not more than 50%, it is a very good asset. We have also discussed how bitcoin volatility has been reducing in each 4 year cycle on this forum many times.

I hope some people will not see it too late before buying bitcoin.

yeah dca is a good idea at the moment.

adding 0.001 a week is a good goal

That is 66 dollars a week. I mean, not saying that is impossible, could be done if you work hard enough, but that is not really common in most parts of the world. Of course, if you are from the USA or somewhere like that, then yes, adding that much is definitely possible. However, if you are not, and you do not really invest that much, then I would suggest that you invest smaller amounts.

Nearly 60 to 70 dollars a week means somewhere around 240 to 280 dollars a month, which is a lot for me. I can never invest that much because I earn more than that, but not by a lot. That would be 20%+ of my income. In nations like the USA, people do have more money than that; they make thousands and thousands of dollars (and then they wonder why people immigrate to their country lol). In my nation, we make a thousand dollars or a bit more; that's it. However, the notion is true; the idea is great, if not 0.001, then something else; if not 70 dollars a week, then maybe 100 dollars a month, as long as you buy some and put it aside, it is a good idea.