🧠 4 Reasons Why Bitcoin Is Dumping

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Good morning - Arsen here. ☕

Welcome back to Bitcoin Therapy. We’re like the Swiss train of Bitcoin newsletters - reliable and always on time.

First, happy and relaxing Sunday to 6,235 patients reading today. 👋 

I’ve made some visual changes to the email. It should look cleaner now.

Let me know what you think by replying to this email (I always reply).

Alright, here’s what I got for you this week:

  • Bitcoin 4th Halving is officially here

  • What the hell is ‘Runes’?

  • Bitcoin is dumping - here’s 4 reasons why

Estimated read time: 3 minutes and 2 seconds

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Alright, let’s Bitcoin…

BITCOIN 4TH HALVING IS OFFICIALLY HERE

Ladies and genteleplebs, you just witnessed history.

No, I didn’t finally put the toilet seat down (shoutout to my fiancée).

The Bitcoin 2024 halving just happened. And it’s a huge deal. Yuuge.

POLL TIME!

What is 'Bitcoin Halving'

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Now, before you panic sell, don’t worry; your Bitcoin is not getting cut in half.

Alright, let me explain it to you like you’re five:

  • Bitcoin halving is when mining rewards get cut in half every 4 years

  • In 2009, you got 50 BTC for mining a block. Since then, it has halved to 25 BTC —> 12.5 BTC —> 6.25 BTC. After this Halving, you get 3.125 BTC.

  • This will keep happening every 4 years until all 21 million BTC are mined (likely in 2140)

And why should you care? The Halving is a crucial mechanism that makes Bitcoin scarcer every Halving.

There is less new supply being mined, while the demand stays constant = Bitcoin price goes up (and you might finally get a girlfriend).

By the way, Bitcoin has 32 halvings in total.

We've only seen 4.

So, if you’re reading this, you’re early af.

And the best part? Halvings are historically followed by massive green candles 🟩

If this is your first Halving and you need moral support, my inbox is always open; I have a few halving memes to cheer you up.

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WHAT THE HELL IS “RUNES”?

Every school has that new, mysterious, cool kid who shows up driving a convertible, and all the girls go crazy over him (including your new “girlfriend,” Stacy).

Well, Bitcoin has a new cool kid, too. It’s called Runes.

Except for girls going crazy over it, it's now a multi-trillion asset managers. One of them was Franklin Templeton, who just released a new report on it.

But what is Runes exactly? Don’t worry, let me explain:

  • Runes is a new fungible token standard on Bitcoin

  • Runes is touted to be an upgrade to existing standards (such as BRC-20) with cheaper transaction fees

  • It’s like Ordinals protocol which lets you put NFTs dickbutts on Bitcoin

Runes went live right after the Halving (yesterday).

But, is Runes good for Bitcoin or not? Let’s take a look:

  1. 🐂 The bull case for Runes: they will attract tons of capital and “investors.” (Ordinals’ NFT craze drove $2B to Bitcoin)

  2. 🐻 The Bear case for Runes: they will enable people to spam and bloat Bitcoin with unnecessary data. For example, at the time of writing this, Bitcoin fees went from $2 —>$120 because of Runes

TLDR: there are even more ways to put random sh*t on the Bitcoin blockchain.

Only time will tell if Runes will stick around or if it’s just hype.

Anyways, here’s what I think of putting jpegs on Bitcoin:

Also, f*ck Stacy.

WHY IS BITCOIN CRASHING?

The spring is in full force. The birds are singing. The Bitcoin halving just happened, and the institutions are swarming to Bitcoin,

All is good in the world.

Except Bitcoin tanked from $71K → $60K this week.

So, why is the Bitcoin price crashing despite good conditions? Well, few reasons:

  1.  International conflict

Last weekend, Iran attacked Israel with a bunch of drones.

The result? Markets crashed.

Generally, when people are afraid of a potential WW3, markets go down. We saw the same thing with the Russia/Ukraine situation

  1. Tax Day in the US

Historically, Bitcoin price drops a few days before tax day.

People sell their Bitcoin to pay their taxes.

  1. Bitcoin Halving

The Halving is a bullish event. And yet, Bitcoin almost always drops before and after the Halving.

This has happened in 3 previous halvings too.

This is because of people “selling the news” and taking a profit.

  1. Unknown reasons

Look, sometimes we have no clue why Bitcoin goes down.

What this simply means is that there are more sellers than buyers, for whatever reason.

All of the 4 together are causing the price to drop. But don’t worry!

Just like before you land on your dream vacation, you might experience some turbulence. 🌴

This is not different.

Stay humble and keep stacking sats.

QUICK NEWS⚡

THIS WEEK IN A MEME 📅

FROM THE ARCHIVE 📁

It’s official.

The 4th Bitcoin halving has officially happened. 🎉

PATIENT REVIEW 🧠

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See you next Sunday,

Arsen

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