Bitcoin breaks below 47k

Yesterday it was noted here, later in the session; that Bitcoin was increasingly at risk of a drop back below 47k. Well, that has duly happened earlier today in the Asian session. The price fell back to as low as 46,309. It has rebounded from that low now after grinding out a base. However, the observations that were noted here last night still stand. The most important of those is not something that you will read about much anywhere else. Why that is the case is not known here, but notwithstanding that fact, Bitcoin is not immune to higher rates of interest, or more rather higher global bond yields. People really do need to understand that because holding Bitcoin, just like gold delivers no return other than the potential for a capital gain. So, if the cost of ownership increases and the risks of a capital loss also increase, then so does the argument for holding it decrease. It’s a simple enough equation really. Of course having me said all that, it will probably shoot higher, such is the analysts curse. Joking apart though, the reasons for holding Bitcoin at such heady levels are not so easily endorsed as they might have been just a couple of weeks ago. It is currently trading at 42,275