Bitcoin is currently trading at an all time high of about $64,000. However, it's not entirely clear why this is so. Search interest for Bitcoin remains muted, and trading volumes are modest. The divergence between price action and search interest that I wrote about two weeks ago is still intact.
This situation cannot persist for much longer before someone is forced to sell, because Bitcoin is in constant need of fresh money in order to pay its energy and hardware bills. With no fresh money coming in, miners are selling into the existing community of whales and hodlers. The community as a whole is either going into debt in order to hold their tokens, or digging into their savings. Either way, there's increasing selling pressure.
If search interest doesn't soon increase from current levels, Bitcoin is likely to see a major correction. The constant need for fresh money to pay its bills makes Bitcoin a de facto Ponzi scheme. It's not money, it's not a commodity, and it's not a productive asset. It's a lottery ticket, and a very pricy one at that.
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| Whale |
By Michaël CATANZARITI - by Michaël CATANZARITI, CC BY-SA 3.0, Link
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