Remy Blaire engages in a compelling discussion with Alisia Painter, the COO and co-founder of Botanix Labs. The episode centers around the recent technical event in the cryptocurrency market known as a “death cross,” which occurred on November 16th when Bitcoin’s 50-day moving average fell below its 200-day average. This event is often perceived as a bearish signal, igniting debates among traders and analysts regarding Bitcoin’s future trajectory.
Remy and Alisia delve into the multifaceted factors influencing Bitcoin’s current state. Alisia explains that Bitcoin is highly responsive to global macroeconomic uncertainty, particularly in the context of equities and changing expectations around interest rate cuts. She highlights a significant mass liquidation event that took place on October 10th, which eliminated a considerable amount of leverage in the crypto market and prompted long-term Bitcoin holders to take profits. Additionally, they discuss the cyclicality of Bitcoin, noting that while the traditional four-year cycle may be fading, remnants of this pattern still exist, suggesting the possibility of further price corrections, albeit not as severe as in previous cycles.
Despite the challenges, Alisia emphasizes that the fundamentals of Bitcoin remain robust. She points out that three-quarters of Bitcoin’s supply is now held by long-term investors, often referred to as “diamond hands,” indicating a strong conviction in the asset’s longevity. This shift in ownership dynamics suggests that panic selling, which characterized earlier market cycles, is less likely to occur.
The conversation then shifts to the growing interest in Bitcoin yield, particularly as traditional investment returns diminish. Alisia explains that while Bitcoin lacks the programmability found in other digital assets like Ethereum and Solana, Botanix Labs is working on solutions to create yield opportunities based on real economic activity within their network. This innovation aims to make Bitcoin a more productive asset, catering to both retail and institutional investors with varying risk appetites.