Inflation is up, all-time highs are rising and falling back, and over the long term, Bitcoin investors who bought the dip in May are looking smug.
What's happening with Bitcoin?
Well, let's look at the news for the last couple of days.
The standard answer is: With the CPI shocking everyone, investors started buying Bitcoin — Gold 2.0 — as a hedge against inflation.
"The last few days we've seen some really big information coming through which has made people want to go out and hedge themselves against inflation risks. Bitcoin's been doing well, crypto's done well as a hedge I suppose, gold's been moving up concurrently with the stronger dollar."
So, at the risk of being repetitive, what's happening with Bitcoin?
Well, one answer is that the average investor's traditional reaction to bad economic news is: When in danger or in doubt, run in circles, scream and shout.
Translated into crypto: Bitcoin is volatile and when the markets are going haywire, sell anything volatile. Because how else can you be sure you'll sell low and buy high?
Run in a Straight Line
So, maybe what's happening with bitcoin is: Same old, same old.
The day traders are taking profit then jumping right back in. The smart money is holding the highs, buying the dips. The FOMOs are, well, running in circles.
"Everyone get ready to catch a screenshot. $69420 is coming."
Also, assume that when sex and marijuana work their way into Bitcoin's price, Elon Musk will tweet something that will move it (and likely Dogecoin) up when that happens.