Good evening,
The halving is approaching and the market sentiment is worse/lower than previous weeks.
There is absolutely a potential for a smaller downside, but I am not loosing this train.
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As the halving occurs, the available BTC liquidity in the market will slowly decrease as miners will have fewer coins to offer/sell back to the market.
In a matter of weeks and months there will be a supply shock, like every other halving.
*THIS TIME IS NOT DIFFERENT*
Understand that reduced liquidity increases price.
As the amount of new coins is reduced price goes up.
Understand that this is mechanical.
*WHAT IF THE PRICE DOES NOT INCREASE?*
That would mean the end of the BTC network.
It would cease to exist (or exist as a dead chain) as fewer and fewer miners will mine for BTC and the network will halt.
The miners needs BTC to have a minimum value as there is a cost related to mining (compute, electricity).
Think about it :)