{"id":4661,"date":"2025-08-25T14:16:21","date_gmt":"2025-08-25T14:16:21","guid":{"rendered":"https:\/\/digkrypton.com\/index.php\/2025\/08\/25\/bitcoin-price-drops-again-and-nope-its-still-not-because-of-the-fed\/"},"modified":"2025-08-25T14:16:21","modified_gmt":"2025-08-25T14:16:21","slug":"bitcoin-price-drops-again-and-nope-its-still-not-because-of-the-fed","status":"publish","type":"post","link":"https:\/\/digkrypton.com\/index.php\/2025\/08\/25\/bitcoin-price-drops-again-and-nope-its-still-not-because-of-the-fed\/","title":{"rendered":"Bitcoin Price Drops Again \u2014 And Nope, It\u2019s Still Not Because of the Fed"},"content":{"rendered":"

Bitcoin Magazine<\/a><\/p>\n

Bitcoin Price Drops Again \u2014 And Nope, It\u2019s Still Not Because of the Fed<\/a><\/p>\n

<\/div>\n

..aaaand, we\u2019re back at it again \u2014 a misbehaving bitcoin price<\/a>. Sunday evening bitcoin flash-crash dipped a red candle the size of Jupiter; and more eerily, it kept dropping down on Monday morning, touching below $111,000.<\/p>\n

Now, around here in the land of bitcoin price therapy, we say that nobody knows why prices<\/a> move. But sometimes<\/em>, we do\u2026 though not as well as we would like. Today, I discuss two things: the last 24 hours\u2019 worth of shenanigans and Fed Chairman Jerome Powell\u2019s remarks late last week.\u00a0<\/p>\n

An Unruly Bitcoin Price<\/h2>\n

Late Sunday (European time) was pretty disgusting:<\/p>\n

It\u2019s hard to say \u201cnobody knows\u201d when a chart looks like that; somebody<\/em> knows what happened to plunge the bitcoin price some 3,000 in a matter of minutes. If it\u2019s not a specific macro event<\/a>, like last week, the only thing eating through order books like this are a) massive<\/em> orders, and \u2014 what amounts to the same thing \u2014 b) mass<\/em> liquidations.\u00a0<\/p>\n

Yesterday, there was some indication of both:\u00a0<\/p>\n

\n

Quien de ustedes fue? pic.twitter.com\/lizlwaDFPD<\/a><\/p>\n

\u2014 Nico \u20bf\u4e30 (@bourbonni) August 24, 2025<\/a>\n<\/p><\/div>\n

or\u2026<\/p>\n

\n

This entity liquidated their entire 24k balance, sending all of it to Hyperunite. They transferred 12k just today and are still actively selling, which is likely contributing to the ongoing price drop. https:\/\/t.co\/HYPBiGzjRf<\/a> pic.twitter.com\/crML9AqvvV<\/a><\/p>\n

\u2014 Sani | TimechainIndex.com (@SaniExp) August 24, 2025<\/a>\n<\/p><\/div>\n

This is an underdeveloped market, and it\u2019s ridiculous how small we are and how illiquid the bitcoin market is: still<\/em> able to get wacked around by individual market actors. (As always in Bitcoinland, there is some schmuck willing to turn<\/a> a verifiably bad<\/em> thing into a good<\/em> thing.)\u00a0<\/p>\n

The 2.5% instant drop in bitcoin price last night might be a one-off due to a whale selling or some liquidations, but the gradual, diagonally down movement during the night and Monday morning (bitcoin price crashing below $111,000) is much more worrying. Ignore the big, noisy whale\u2026 wth is happening? Why are we slowly dying<\/em> when we should be winning, son!<\/em><\/p>\n

All the macro arrows of the world are pointing in the right direction: Why is the bitcoin price trading down<\/em>, in this<\/em> range, when any sane assessment puts it double or triple from here\u2026? (And no, we didn\u2019t<\/em> drop below $111,000 as<\/em> or because<\/em> or in relation whatsoever to Metaplanet announcing buys<\/a>).<\/p>\n

Price does whatever it wants; shitcos do whatever they please.<\/p>\n

Bitcoin price therapy definitely<\/em> needed: Bitcoin price just does whatever it wants, with no regard for sanity or rational assessment. Not a care in the world for the most bullish of bullish circumstances.\u00a0Maximum pain, I\u2019ve heard it said<\/strong>. Not even Saylor\u2019s million-dollar-cost averaging made much of a dent:<\/p>\n

\n

Strategy has acquired 3,081 BTC for ~$356.9 million at ~$115,829 per bitcoin and has achieved BTC Yield of 25.4% YTD 2025. As of 8\/24\/2025, we hodl 632,457 $BTC<\/a> acquired for ~$46.50 billion at ~$73,527 per bitcoin. $MSTR<\/a> $STRC<\/a> $STRK<\/a> $STRF<\/a> $STRD<\/a> https:\/\/t.co\/KCrM0ffClo<\/a><\/p>\n

\u2014 Michael Saylor (@saylor) August 25, 2025<\/a>\n<\/p><\/div>\n

One of these magic tea leaves reading techniques (128-day moving average), tells us our Bitcoin Magazine Pro team<\/a> today, is at $108,500\u2026 so we\u2019ll probably go there. Saylor et al<\/a> have already sold their kidneys and chairs, so I wonder what\u2019s left.<\/p>\n

More interesting\/terrifying is that it keeps falling afterwards, hitting new lows. Our most scoop-like explanation is that all of these shitcos \u2014 of which Mr. Bailey, the owner of BTC Inc, runs one, having recently incinerated some $41 million \u2014 gobbling up all these coins during the spring couldn\u2019t hold on to them and are now burping them back out again; some, in liquidation-infested red candles, and others in slow, grindy, time-weighted price.<\/p>\n

A certain Cypherpunk OG seems aware of the structure:<\/p>\n

\n

have they not heard of TWAPs? do they not like money? such clumsy market activity. normally people with that kind of money would be smarter.<\/p>\n

\u2014 Adam Back (@adam3us) August 25, 2025<\/a>\n<\/p><\/div>\n

Bitcoin Price and Powell\u2019s Bowel<\/h2>\n

Sometimes we actually (sort of) do<\/em> know what happened in markets \u2014 like last week, Aug 22, at 10 am Eastern: Released on Fed website was the statement\/upgrade to Fed\u2019s monetary policy framework<\/a>. It was widely interpreted as future easing of monetary policy in the cards. How<\/em> do we know this? Because every (hard) asset jump on the minute, and the dollar index fell<\/em>:<\/p>\n

9:59:49\u2026bitcoin price = $112,393, according to Bitcoin Magazine Pro\u2019s chart.<\/p>\n

10:00:49, one minute later, it\u2019s 113459\u2026\u00a0<\/p>\n

a few minutes after that, we hit 115,000, bitcoin price rising 2.3% on the news.<\/p>\n

This is the kind of shit that moves markets, and the instant<\/em>, large moves make us pretty confident that THIS is the cause.<\/p>\n

(for reference: 9.59, DXY = 98.7; two minutes later, 98.15; another minute, 97.8. That\u2019s 1%, in a blink\u2026 That\u2019s a big move for the DXY!)<\/p>\n

Now we\u2019ve located the source \u2014 Powell\u2019s speech and\/or the release of the statement. Which<\/em> bit of his statement is what shocked markets so?<\/p>\n

What happens on releases like this \u2014 or inflation numbers or unemployment by BLS \u2014 is that simple trading algorithms scrape the websites for instant updates and make a split-second assessment, often with second-order trading effects following. The move itself often get reversed ten, twenty, thirty minutes later when human and intelligent assessment have gotten involved. It was all a nothingburger, after all.\u00a0<\/em>That wasn\u2019t the case this time, as the bitcoin price traded high over the weekend (until someone ruined the fun on Sunday\u2026).<\/p>\n

Powell\u2019s statements last week revealed that<\/p>\n

inflation is a little elevated, but under control and coming down<\/p>\n

GDP growth had slowed markedly<\/p>\n

unemployment was steady and balanced (but \u201ca curious kind of balance\u201d where both supply and demand fall together) \u2192 risks altogether up.<\/p>\n

\u2026and they\u2019ll scrap this entire mistaken idea of average<\/em> inflation target (over some time period nobody ever specified).\u00a0<\/p>\n

\u201cIn the near term, risks to inflation are tilted to the upside, and risks to employment to the downside \u2014 a challenging situation\u201d\u00a0<\/p>\n

Yet Powell concluded that those risks \u201cmay warrant adjusting our policy stance.\u201d<\/p>\n

\n

Powell confirms the Fed is abandoning its 2% average inflation target. pic.twitter.com\/7J2W3cNyHL<\/a><\/p>\n

\u2014 TFTC (@TFTC21) August 22, 2025<\/a>\n<\/p><\/div>\n

In the minutes and hours after the speech and the release of the statement, bitcoin price peaked at $117,000, before falling back to $116,000; that\u2019s market participants dissecting and assessing, organically, what this new state means.<\/p>\n

Here\u2019s where my \u201cNobody knows why\u201d take still<\/em> holds: Nobody knows which part<\/em> of Powell\u2019s statement mattered, since new information is always mixing and merging with the expectation<\/em> market participants had going in \u2014 and we can only rarely tell what those were. What we\u2019re doing when we\u2019re playing these catch-up, ad hoc, after-the-case explanations is playing post-rationalization games<\/a>. Not that impressive.\u00a0<\/p>\n

Altogether pathetic. We need Bitcoiners rich and flourishing, not impoverished and distraught.<\/p>\n

Bitcoin price therapy out. See you all in Hong Kong<\/a> for Bitcoin Asia<\/a>.<\/p>\n

This post Bitcoin Price Drops Again \u2014 And Nope, It\u2019s Still Not Because of the Fed<\/a> first appeared on Bitcoin Magazine<\/a> and is written by Joakim Book<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

Bitcoin Magazine Bitcoin Price Drops Again \u2014 And Nope, It\u2019s Still Not Because of the Fed ..aaaand, we\u2019re back at it again \u2014 a misbehaving bitcoin price. Sunday evening bitcoin flash-crash dipped a red candle the size of Jupiter; and more eerily, it kept dropping down on Monday morning, touching below $111,000. Now, around here […]<\/p>\n","protected":false},"author":0,"featured_media":4662,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-4661","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-bitcoin"},"acf":[],"_links":{"self":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts\/4661","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/comments?post=4661"}],"version-history":[{"count":0,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts\/4661\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/media\/4662"}],"wp:attachment":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/media?parent=4661"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/categories?post=4661"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/tags?post=4661"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}