While there was plenty of FUD flying around, it wasn’t the real reason prices pulled back so significantly.
This episode is sponsored by Nexo.io.
Today on the Brief:
Home sales up, home supply downBiden’s first test on the stimulusEuro pessimism
Our main discussion: Why the bitcoin dip wasn’t caused by FUD.
Anyone paying attention this week had reasons for frenetic worry. Janet Yellen’s comments on criminal activity. Persistent questions around Tether. A non-story about a double-spend that got amplified by mainstream media.
In this episode, NLW argues that none of these actually explains the dip. Instead, he argues, they were used by sophisticated traders to amplify the dip’s impact.
See also: First Mover: Bitcoin ‘Double-Spend’ FUD Gives Newbies a Volatility Lesson
Image credit: Nuthawut Somsuk/Getty Images Plus