Reporters Begged for Drama, and Volatility Delivered

Unpacking a week of volatility, regulatory shifts, and Blockstream's strategic bet on Bitcoin's future.

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Bitcoin price: $26,192

Date range: August 14 - August 20, 2023

Bitcoin Perception Index (BPI): 7/100 - strong leaning towards fear

Main coverage: Market Dynamics and Price Movements,ETFs and Regulatory Developments, Exchanges and Regulatory Compliance, Global Economic Factors Impacting Cryptocurrency

This week's spotlight: Bloomberg

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Weekly Snapshot

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Main Topics Of The Week

Bitcoin's Market Dynamics and Price Movements

The first half of the week has several articles touch upon Bitcoin's price stability and low volatility until the second half of the week where the sudden price drop was everything the media was covering.

For instance, Bloomberg started the week highlighting the decline in Bitcoin's volatility stating that "Bitcoin (BTC) Extreme Volatility Vanishes Amid ‘Extreme Apathy and Exhaustion’" before retracing and claiming that "Bitcoin Calm Shatters With Sudden Tumble, Mass Liquidations," discussing the abrupt end to Bitcoin's stability, resulting in a significant price drop.

It’s funny how these things happen.

Bitcoin ETFs and Regulatory Developments

The potential impact of Bitcoin ETFs on the BTC market value is a recurring theme. Articles discuss the involvement of major financial institutions in the Bitcoin ETF race and the SEC's decisions regarding these ETFs.

The entry of BlackRock and the anticipation surrounding the approval of Bitcoin ETFs are significant points of discussion, several weeks after the news broke.

Exchanges and Regulatory Compliance

The regulatory landscape for cryptocurrencies, especially in the U.S., is a prominent topic. Coinbase's announcement of receiving regulatory approval to introduce federally regulated futures trading is highlighted. Additionally, the challenges faced by exchanges, such as lawsuits from the SEC, are discussed.

Global Economic Factors Impacting Cryptocurrency

The broader economic landscape, especially events in China and their implications for the global financial market, is a recurring theme. Articles discuss concerns over China's economy, the strength of the U.S. dollar, and the potential impact of these factors on the widermarket.

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Spotlight on Bloomberg: Blockstream's Bet on Bitcoin's Rebound

As you could see in the weekly snapshot, Bitcoin mentions in the media skyrocketed across all outlets following Thursday’s price drop. To focus the attention on the long-term horizon instead of being captured by the negative news, this week's spotlight is on Blockstream CEO Adam Back interviewed by Bloomberg’s David Pan about the strategic moves Blockstream is in anticipation of a potential ASIC price resurgence.

Pan reports that the company is strategically purchasing Bitcoin mining rigs, anticipating a future profit when they resell these rigs, provided their prediction about Bitcoin's price trajectory recovering holds true.

Their decision to invest heavily in Bitcoin mining rigs is not just a gamble but a calculated move based on market analysis and the upcoming 'halving' event, Pan explains.

Generally speaking, the article portrays a positive sentiment towards Bitcoin, emphasizing Blockstream's optimistic outlook on its future. David Pan is one of an increasing number of reporters dedicating time to understand the many different aspects of Bitcoin, for which he is regarded as one of the top journalists at Bloomberg covering the space, with a special attention to the mining industry.

The mention of Bitcoin's past performance, reaching an all-time high, further adds to the positive sentiment. However, it's crucial to note that the article also mentions the current stagnation in Bitcoin's price, providing a balanced perspective.

Key Quotes

"Bitcoin developer Blockstream Corp. is betting that the world’s most valuable cryptocurrency is poised for a massive rebound, and is buying up Bitcoin mining rigs so that it can sell them for a profit later should the prediction hold."

"We think there’s a huge price correction coming where we see the ASICs coming back up to where the Bitcoin price would be when the capacity is on a market,” said James Macedonio, global head of mining sales and business development at Blockstream."