Is It Really Wrong to Say Bitcoiners “Don’t Care” About Falling Bitcoin Prices

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Bitcoin’s price slump has many investors panicking as they may be questioning their investment strategies and the health of their portfolios. For his part, investment analyst Anthony Pompliano claimed that while Bitcoin’s price performance may look worrying, Bitcoin miners and Bitcoiners “don’t care.”

However, this is a rather reductive analysis, because the situation is much more complex.

A Bitcoin crash or just a fender bender?

During an episode of his trade show, Pompliano claimed,

“Bitcoin’s hash rate continues to hit all-time highs. Countries have tried to wipe them out. Nobody cares. Price goes down. Nobody cares.”

However, a look at the recent hash rate allows us to pick up on the nuances of this statement.

Source: Glassnode

While Bitcoin’s average hash rate has indeed reached all-time highs, this has come after frequent spikes and dips. In fact, from January 21, we can see the average hash rate drop again.

Additionally, the hash rate is not completely immune to global events such as mining bans and internet outages, which can affect miners.

Need more than a flash of light. . .

Emphasizing his point, Pompliano said,

“Bitcoin’s monetary policy doesn’t care what’s happening in the world. It doesn’t care about global pandemics, it doesn’t care about the Federal Reserve, and it certainly doesn’t care who buys it. and sell it.

But while Bitcoin miners and other parts of the ecosystem may have recovered from past events that led to performance drops, “not caring” is overkill. After all, the market is not in a state of extreme fear for no reason. And fear can trigger actions such as panic selling.

A look at the Lightning Network can also show how crashes have affected other parts of the Bitcoin ecosystem. Again, this is more than just a case of right or wrong.

Source: Glassnode

The takeaway here is that although there was a significant drop in LN capacity at the time of the December 4 crash, the network recovered within a month. Moreover, while the number of knots also fell after January 10, all-time highs were soon reached again.

Overall, the Bitcoin ecosystem is interconnected and price performance can affect other sections of the network.

We need to talk about bitcoin

At press time, the king’s coin was changing hands at $35,818.88, after falling 16.35% over the past week. As many might expect, Salvadoran President Nayib Bukele wasted no time buying 410 Bitcoins for the country.

It is estimated that he bought each BTC at a price of around $36,585. However, many experts were far from euphoric.

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