Bitcoin is Dead

[Castle2.0]

The macro:

The same reason everything is dropping: the central bank raised rates. It makes borrowing more expensive. This is supposed to slow spending. The stated goal is to bring inflation under control (officially at 9.1%, and supposedly they want 2%.)

The micro:

You also had some large over-leveraged entities rehypothecating capital. We're all geniuses in a bull run. When prices start to fall things unwind. These over-leveraged entities are forced to sell to recapitalize their loans/positions. The lenders holding these loans may go insolvent because they aren't being repaid by the risky borrowers who borrowed from them.

You can look up 3AC (3 Arrows Capital), Celsius, and BlockFi to name some. Oh and TERRA/LUNA. We had a big dip because they had a large BTC reserve they were forced to sell to try to keep the peg their "algorithmic stablecoin." I don't trust algo stablecoins. If I want to be in fiat, I use normal stablecoins like USDC, USDT, BUSD.