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"Bitcoin's Fed Nightmare"
This week's spotlight: Forbes
Welcome to the latest edition of Bitcoin Perception.
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EOW closing Bitcoin price: $26,250
Date range: September 18 - September 24, 2023
Bitcoin Perception Index (BPI): 37/100 - trending toward fear
Main Topics: Bitcoin's Price Movement and Market Analysis; Regulatory and Legal Developments; Institutional Involvement.
This week's spotlight: Forbes
Main Topics Of The Week
Bitcoin's Price Movement and Market Analysis
Bitcoin's Fed Nightmare: The Federal Reserve's recent policy decisions have negatively impacted Bitcoin's price and market sentiment. The article suggests that Bitcoin's sensitivity to macroeconomic factors is becoming increasingly evident - more on this week’s spotlight below. Read more
Federal Reserve's Influence on Bitcoin: CNBC jumped on the bandwagon and explored how the Fed's actions can affect prices, emphasizing that BTC is not immune to traditional market forces. Read more
Bitcoin Breaks Above $27,000: But despite the Fed's influence, Bitcoin managed to break above $27,000 for the first time in September, showing its resilience. Read more
Regulatory and Legal Developments
UK Introduces Comprehensive Cryptocurrency Marketing Oversight Rules: The UK is stepping up its regulatory game by introducing new rules aimed, of course, at protecting investors. While the rules apply to cryptocurrencies in general, they will also impact Bitcoin. Read more
Large Japanese Bank's Subsidiary Nomura Launches Bitcoin Fund for Institutional Investors: Nomura is launching a Bitcoin fund, signaling growing institutional interest among their cohort. Read more
This Week's Spotlight: Forbes
So, the Forbes article "Bitcoin's Fed Nightmare" is worth your time if you're keen on understanding how the Federal Reserve's financial decisions might affect the price of Bitcoin. The author, Billy Bambrough, argues that Bitcoin isn't the stand-alone asset de-pegged from financial markets us Bitcoiners sometimes romanticize it to be. While it’s true that it's sensitive to the Federal Reserve's policy shifts, just like any other financial asset, this perspective, in my opinion, remains pretty U.S.-centric.
Now, don't get me wrong, the Fed's moves are a big deal, but they're just one piece of a much larger, global puzzle. Bitcoin is global, and its real "macroeconomy" extends far beyond the U.S. Think about the folks using Bitcoin for remittances in Latin America, or as a hedge against inflation in countries with unstable currencies. These use cases are often overlooked by the mainstream media, but they're crucial to understanding Bitcoin's broader impact and resilience.
While the article does a great job of sounding the alarm on Bitcoin's sensitivity to the Fed's policies, which makes for clickable headlines, it misses the global context. Bitcoin isn't just reacting to the Fed; it's also being shaped by diverse, global forces that contribute to its strength and versatility. These global dynamics are actually a counterbalance to the Fed's influence, making Bitcoin more than just another asset in the U.S. financial market.
This article is a good reminder to zoom out and look at the global landscape. Bitcoin isn't just playing in the U.S. sandbox; it's building castles on beaches all around the world. And that's the part of the story that often gets left out but is absolutely critical to understand.
Last Friday witnessed a 1.3X surge in negative mainstream media sentiment surrounding Bitcoin, marking the highest level of adverse coverage for the month of September. What drove this trend? The Federal Reserve.