Is Bitcoiner Really “Not Interested” in the Recent Sharp Drop?
Bitcoin’s price drop has unsettled many investors, raising doubts about their investment strategies and the health of their portfolios. For his part, investment analyst Anthony Pompliano claims that while Bitcoin’s price action may look worrying, miners and bitcoiners “don’t care much.”
However, this is just a fairly simple analysis as market situations can be much more complex.
Bitcoin crash or just a hurdle?
In the latest episode of his show business, Pompliano says:
“Bitcoin hashrate continues to hit ATH levels. Countries have tried to eliminate this market. However, nobody cares. People don’t care much about the price going down either.”
However, a recent hashrate review revealed nuances to this claim.
BTC network hash rate | Source: Glassnode
While the average bitcoin hashrate has indeed reached the ATH threshold, the indicator rises and falls frequently. In fact, the average hashrate has continued to drop since January 21st.
Additionally, the hashrate is not entirely immune to events such as mining bans and internet disruptions that can potentially affect miners.
The market needs more impetus
To get his point across, Pompliano to explain:
“Bitcoin monetary policy doesn’t care about what’s going on in the world. It doesn’t care about the global pandemic, it doesn’t care about the Federal Reserve, and it certainly doesn’t care who buys and sells it.”
But while bitcoin miners and other parts of the ecosystem may have recovered from previous negative events, “don’t care” is unlikely to happen across the space. After all, the market will not be in a state of extreme fear for no reason. And fear can trigger actions like mass sell-offs.
A look at the Lightning Network can also show how the decline has impacted other parts of the Bitcoin ecosystem.
Lightning network capacity | Source: Glassnode
While LN capacity dropped sharply around the time of the December 4 incident, the network recovered within a month. Even though the number of nodes also decreased after January 10, the indicator soon returned to ATH.
Overall, the Bitcoin ecosystem is interconnected, and price developments can impact other parts of the network.
At press time, the largest cryptocurrency is changing hands at $35,248 after falling more than 16.35% over the past week.
BTC price chart | Source: TradingView
As many might expect, El Salvador President Nayib Bukele didn’t waste much time before deciding to buy the 410 dip for the country. It is estimated that he bought each BTC for around $36,585. However, many experts are not yet optimistic about this event.
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