BTC isn’t falling because the fundamentals broke, it’s falling because leverage is unwinding across the entire risk complex. Once the forced liquidations finish, the selling pressure evaporates, spot demand steps back in, and BTC should snap back fast and hard, likely to new highs.
In fact, the macro environment is actually getting BTC-friendlier every day, with higher inflation, more fiscal spending, and limited room for central banks to tighten all support a rebound once the leverage flush is over.
That's the standard "it's just leverage unwinding" cope, but it ignores the underlying issue: the only reason Bitcoin trades like a high-beta risk asset is because that's
exactly what it is. The same liquidity cycle that props up equities, tech, and real estate props up BTC. When credit tightens, everything built on excess liquidity gets hit. It's not just some temporary quirk, it's structural.
If Bitcoin were truly the uncorrelated hedge it's marketed as, it wouldn't crater every time global risk comes off. The leverage argument actually proves the opposite - that the market for BTC depends on leverage and liquidity flow, not on its "fundamentals."
And sure, inflation and fiscal expansion make a nice macro story, but inflation also means real yields rise, regulatory scrutiny tightens, and capital flees volatility. "Snap back fast and hard" only happens if risk appetite returns, which makes Bitcoin less a hedge against fiat decay and more a speculative thermometer for it.
It's falling because Bitcoin's real fundamental has always been liquidity, not ideology.
The network is functioning, blocks are being made, transactions are clearing. Fundamentals in this context is not what you're referring to. The point is that there is nothing wrong with Bitcoin that is causing the price to go down, its a tradfi issue that is effecting the USD price.
If you don't think uncensorable instant settlement anywhere in the world, permissionlessly, and nearly free has value then I don't know what to tell you other than you're wrong. If you know anything about money transmission rails, and I know you do, you know just how valuable that is.
You're mixing up protocol fundamentals with market fundamentals. Yes, the Bitcoin network is producing blocks. Yes, nodes are online. Yes, transactions clear. Nobody is claiming the protocol is broken.
But "the protocol still functions" has nothing to do with why the price moves. If price only reflected whether the chain was operational, Bitcoin would trade flat forever. Markets care about liquidity, flows, leverage, and risk appetite, not whether SHA-256 is running smoothly today. Calling it "a TradFi issue" is basically admitting the point that Bitcoin trades like a high-beta liquidity asset. If traditional risk markets seize up, BTC bleeds with them. That
is a fundamental, just not the technical one you prefer talking about.
