Bitcoin Rally: Realization Trustlessness is the Future!

Bitcoin Rally Fueled by Trustlessness

• Bitcoin’s recent rally is fueled by the desire to hold a trustless, decentralized asset amid deteriorating macroeconomic conditions.
• Since its peak in November 2021, Bitcoin has suffered a 78% peak-to-trough loss, caused by inflation and geopolitical conflicts followed by the UST scandal and the collapse of FTX.
• Despite the market downturns, Bitcoin has grown 94% since March 11 as banking collapses occurred.

Overview

Bitcoin’s recent rally among deteriorating macroeconomic conditions can be explained by the desire to hold a trustless, decentralized asset. Over the past 18 months, BTC has faced significant headwinds due to inflation and geopolitical conflicts leading to its 78% peak-to-trough loss in November 2022. However, Bitcoin has managed to buck the broader market trend and grow 94% since March 11 when banking collapses occurred.

Causes of Market Downward Spiral

The downward spiral of BTC began with inflation and quantitative tightening followed by conflict in Eastern Europe in February 2022. This was quickly compounded by news that LUNA’s ecosystem was a fraud from the start – triggering a selloff that affected other CeFi platforms. Things further worsened with FTX’s collapse which marked the bottom for BTC as it posted a 78% peak-to-trough loss in November 2022.

Realization of Trustlessness

Research Analyst Dylan LeClair believes that Bitcoin’s rally boils down to an understanding that trustlessness is ‘the only way forward’. Open Interest data supports this statement as it shows futures derivatives contracts sliding from 600,000 in November 2022 to 400,000 at present – leaving majority believers holding for long term gains rather than quick profits.

Conclusion

In conclusion, Bitcoin is demonstrating strong resilience against macroeconomic conditions thanks to its decentralization and trustlessness qualities which are increasingly being realized as people look for a safe haven against traditional financial systems crumbling around them