While there was a lot of FUD flying around, it wasn’t the real reason prices fell so sharply.
This episode is sponsored by Nexo.io.
Today on the letter:
- Home sales rise, home supplies fall
- Biden’s first stimulus test
- Euro pessimism
Our main discussion: Why the bitcoin dip wasn’t caused by FUD.
Anyone paying attention this week had reasons for hectic worry. Janet Yellen’s comments on criminal activity. Persistent questions about Tether. A non-story about a double issue reinforced by the mainstream media.
In this episode, NLW argues that none of these actually explain the break-in. Instead, he argues, they were used by experienced traders to amplify the effects of the break-in.
See also: First Mover: Bitcoin Double Spend FUD Offers Newbies A Volatility Lesson
Photo credit: Nuthawut Somsuk / Getty Images Plus