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Your first Bitcoin purchase with Zellix is FREE (valid between 8/18-8/19).

WHY IS BITCOIN ACTING LIKE A DEAD ROCK?

If I had a satoshi for every time someone asked me this…well, I’d have a lot of satoshis.

And this week’s no exception. But something’s not right about this week’s price action.

Despite record Spot ETF inflows, Bitcoin’s price is as exciting as watching paint dry. Why?

The short answer is simple: some of you have paper hands and are selling.

But that’s not the whole story — here are 3 reasons why Bitcoin's in the snooze-fest right now:

1/ Negative macro outlook

As much as I hate to admit it, Bitcoin is NOT an uncorrelated asset.

It moves with the rest of the assets according to the general macro outlook.

The keyword here is liquidity (aka freshly printed cash).

• More Liquidity = prices go up

• Less liquidity = prices go down

Here are the 2 main macro factors that contribute to liquidity:

1. Quantitative easing (QE)

2. Interest rate cuts

Quantitative easing = finance nerd talk for money printing.

It’s when central banks buy bonds and other assets from banks, thus injecting liquidity into the system.

This newly injected money pumps the price of financial assets (including Bitcoin).

Interest rate cuts = lower loan repayments = more cash in your wallet to invest in assets

As of right now, interest rates are still high, and mass-scale QE, like we saw in 2021, has yet to begin.

2/ Bitcoin ETFs are buying over-the-counter (OTC)

If you didn’t know, Bitcoin’s price is NOT decided by big institutions.

It’s decided by retail investors like you (aka plebs) buying/selling on popular exchanges like Coinbase.

What do I mean? Bitcoin ETFs don’t just login to Coinbase and press ‘buy.’

They buy via OTC trades, which don’t affect Bitcoin’s price as much.

Since 90% of Bitcoin ETFs hold their Bitcoin in Coinbase, they can settle massive trades as internal ledger transfers on Coinbase (without leaving a visible on-chain footprint).

So, for the rest of the market, these trades might as well have never happened (think of it as Schrödinger's trades).

3/ OG whales are selling off

Now that there’s a lot of liquidity with the growing Bitcoin ETF inflows, many whales are selling some of their Bitcoin.

“But why didn’t they sell earlier?“

Because without liquidity, their big sales would have tanked the market.

It’s not a coincidence that Bitcoin tanks every time ETFs go crazy or we see some positive news.

Positive news/increases in ETF inflows = retail investors rush to buy = new exit liquidity for whales

—

In short, Bitcoin is in a weird phase, with big players playing chess while retail investors are playing checkers.

Also, I oversimplified this story a lot to make my points clear. I hope you forgive me :)

AMAZON NOW ACCEPTS BITCOIN?!

Well, almost.

Guess what? I’ve just discovered a way to buy ANYTHING on Amazon with Bitcoin.

And as an Amazon power user addict who is also irresponsibly all in Bitcoin (my bank account thinks I'm nuts), this is a lifesaver.

It’s called Zellix - a website where you can buy anything on Amazon with Bitcoin.

It has 4 super simple steps:

1. Find your product: Search on Amazon for the product you want to buy

2. Copy and paste: Add the product link into the search box in Zellix

3. Go to checkout: Go to checkout and confirm the order

4. Pay in Bitcoin: You’ll see a Bitcoin invoice pop up - pay it with your Bitcoin wallet of choice

And voilà - your order has been placed on Amazon. 🤝

My favorite part? You can make your order anonymous on Zellix. So, those 3 AM impulse buys are your little secret.

And as a reader of Bitcoin Therapy, your first purchase is FREE (valid between 8/18-8/19)!

Happy shopping! 🛍️

DON’T MISS THESE 10 DAYS

I’m a big proponent of Bitcoin DCA.

It takes away all emotion from your saving.

And most importantly, it allows you to benefit from “Rule of 10 Best Days”.

Never heard of it? Well, buckle up.

Here’s how it works:

• Most of Bitcoin returns happen in only 10 days out of 365

• And if you miss those days, you might as well have invested in Beanie Babies.

Here’s an example:

*whips out calculator*

1. Look at Bitcoin for the past 5 years

2. Remove the top 5 days with the biggest returns

3. Total bitcoin returns drop from 348% —>83%

AND if you remove the top 10 days, the returns go from 348% —> 10% loss. Ouch.

What YOU need to know is this has been happening since 2013.

And it’s happening again:

So, what’s the lesson here? Stop trying to time the market.

You’re not Nostradamus. If you think you can time 10 days out of 365, please slap yourself.

Just buy weekly, hodl, and let the magic happen.

WHALES GOBBLE UP BITCOIN DURING CRASH

While you were scared during last week’s “crash,” big boys were gobbling up cheap Bitcoin like it’s Black Friday.

Check this out:

1. $250 billion was wiped out from the crypto market

2. Bitcoin whales owning 100-1000 BTC reached an all-time-high

Coincidence? Nope.

Institutional investors are not called ‘smart money’ for no reason.

They know the best time to buy is when there is blood on the streets.

And if you’re new here, listen up:

• These dips are nothing new — don’t let them shake you out

• When in doubt, zoom out — Bitcoin is only going up in the long term

• When there’s blood on the streets, the whales feast — and so should you

• Stay humble and don’t try to trade these price swings — you’ll only get rekt

If you do these, you will be rewarded.

That’s it for this one—big thanks to Zellix who allow us to write Bitcoin Therapy. You support us by supporting them ❤️

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See you next Sunday,

Arsen