Hey Everyone,
Hindsight is always 20/20, so even though nobody could have possibly predicted a $15,000 bounce off of bitcoin's $40,000 support level, now that it has materialized, we can certainly see what caused it.
First, let's knock off the reason why I believe the narrative seekers got it wrong, namely that both U.S. Securities and Exchange Commission Chair Gary Gensler and Federal Reserve Chair Jerome Powell, aka J-Pow, said they weren't planning on banning it.
Sure, there has been a lot of buzz about this on social media, but I don't think it swayed many large investors very much. The simple fact is that we already knew this.
Sure, it's a comforting affirmation, but I don't think many people were actually expecting a China style crypto ban in the U.S.
Much has been said about institutional adoption lately, but I don't feel comfortable with this narrative either.
Volumes for the CME bitcoin futures were high these past few days, but not quite as lofty as they were in September when the market was selling off.
Further, over at Grayscale, we can see that the volumes for their bitcoin trust product have been in decline since the beginning of the year.
