Furthermore, Bitcoin’s flirtation with the $100,000 mark is more than just a dollar figure. Perhaps most frightening, it serves as a brutal stress test, not just exposing the cracks in our financial system but more importantly within ourselves. Soon, we will be witnessing that harsh separation play out again—a digital remake of the same historic economic disparities.

Who Actually Benefits From Crypto?

This week’s dip, a fairly minor stumble from $106,500 to $103,500 was met by a predictable cascade of “weak hands” selling. More than 15,000 BTC was sold off at a loss. But who are these "weak hands"? Let's be real: they're often the smaller investors, the ones who bought into the Bitcoin dream with money they couldn't really afford to lose. They’re the people who first understood crypto as an alternative to soaring inflation, frozen bank accounts or just general economic malaise.

Think about it. Imagine you're a single parent, working two jobs, and you put a small chunk of your savings into Bitcoin hoping for a better future. A drop as severe as the one above isn’t merely a market correction, it’s a potential catastrophe. It’s the unexpected car repair bill, the upcoming rent payment you may need to pay. That’s the human toll behind the data that you aren’t being shown.

On the flip side is the “strong hands” contingency at work. That’s why these institutional investors and wealthy individuals consider these market dips as the best possible buying opportunities. Then, they use these mass discounted coins to increase their wealth and control over the entire crypto ecosystem. It’s financial trickery and charlatanism at best and a transfer of wealth at worst, pure and simple. The poor get poorer, and the expendable… you can finish this cliché.

Instead of new opportunities, the current market is focused on a “blind spot.” Specifically, Spot bit show has experienced an unabated negative spot volume delta since June.

Freedom To Lose, or Need To Win?

Here’s where the “freedom versus need” tension becomes a stark, if tragic, reality. We continue to hoist Bitcoin high as a mighty standard of financial independence. It gives you the power to go around the old gatekeepers and write your own future. Returning to our original question, is that freedom really available to all? Or is it just a gilded cage for anyone who already has the means to eat dirt and live off the land?

While the notion of “be your own bank” is undoubtedly empowering, that empowerment truly lies with those who understand the responsibility it brings. Are we doing enough to prepare people for the emotional rollercoaster of crypto investing? Are we giving them the education and tools necessary to be able to make the most educated decisions? Or are we simply sending them off into the shark-infested waters and hoping for the best?

The story so far I think has been a bit too favorable towards the hodler, that kind of stoic investor who survives every storm. That narrative overlooks the fact that not everyone can afford to hodl. Their financial requirements are simply not as urgent, their margins not as razor thin. For them, Bitcoin is not merely an investment, but rather a bet with disastrous effects.

Is Crypto Education Failing the Vulnerable?

Long-Term Holders (LTHs) are continuing to soak up the Long-Term Holder distribution-STH capitulation sell-off. Unfortunately, while this indicates a stabilization of the market, it does not ensure a more equitable distribution of wealth.

We sorely lack a more truthful and complex discussion about the nature of investing in crypto. One that addresses the dangers involved, especially for the ones who already live at the edge of their finances. It’s time to get past the hyperbole. We need to offer effective, realistic, relevant, easily implemented instruction that equips folks with the information and tools necessary to make smarter decisions.

Ultimately, the $100,000 Bitcoin test isn’t a price test, it’s a test of our values. We just have to choose whether we are truly committed to constructing a more equitable and inclusive financial system. Without these guidelines, we run the risk of letting this crypto revolution worsen inequalities that already exist. The possible bottom would see price re-test an FVG and daily OB to the $97k-$94k area. We need to keep in mind the environmental conditions with geopolitical tensions and the unknowns facing the FOMC.

  • Demystifying the technology: Explaining blockchain and cryptocurrency in plain English, not technical jargon.
  • Teaching risk management: Emphasizing the importance of diversification and only investing what you can afford to lose.
  • Highlighting the psychological aspect: Helping people understand their own biases and emotional triggers, and how they can impact their investment decisions.

It's time to ask ourselves: are we building a future where financial freedom is a reality for all, or just a privilege for the few? The answer, I would argue, is three-fold – education, empathy, and a little bit of fearless iconoclasm. Let’s make sure that Bitcoin can live up to its potential to make the world a better place. It should do more than just make a privileged few fabulously wealthy. It needs to lift everyone up.

I am not a financial advisor. This is not investment advice. Do your own research.

Disclaimer: I am not a financial advisor. This is not investment advice. Do your own research.