Bitcoin Won’t Rally Until Dictators Stop Selling
Time and again it appears as though Bitcoin weakness coincides with problems in countries run by dictators for a lack of a better word.
Maybe it is a coincidence that Bitcoin’s recent slide that started in early January just as Venezuelan bonds started rallying on hopes that Juan Guaido could be a credible replacement for Maduro. The first serious mentions of Guaido occurred on January 5, but they didn’t get real traction until January 10. Bitcoin was above $4,000 on January 9 and fell as low as $3,360 this past week, before bouncing nicely on Friday. The Venezuelan 7% bonds due in 2038 were trading at 23 cents on the dollar on January 9 and rallied as high as 32 this past week. They declined as during the week as Bitcoin rallied.
It could be coincidence, or it could be that a dictator facing international pressure and steep declines in oil revenue was selling Bitcoin to fund operations?
That sounds like a conspiracy theory and there is no evidence that Madura or his cronies owned bitcoin, but this isn’t the first time I’ve noticed this trend. ..Read More..