Exclusive: Satoshi Nakamoto analyzes the reasons behind Bitcoin's price crash!

 

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Earn News Exclusively Reports

To the Bitcoin Community,

The current price volatility is an expected feature of the protocol's early adoption phase. Bitcoin's value is not derived from speculative sentiment but from mathematical scarcity and cryptographic security. The recent correction follows a predictable pattern observed in previous market cycles, where rapid appreciation is met with profit-taking and temporary liquidity contractions.

Technical Analysis of the Drawdown:

1. Market Cycle Dynamics: Bitcoin's historical data shows drawdowns of 30-80% are common during bull market corrections. The current -56% decline from all-time high aligns with prior cycle behavior (2013: -75%, 2017: -86%). This is mathematically consistent with power-law corridor models.

2. On-Chain Metrics:

   • MVRV Ratio indicates coins are moving at loss, typical of capitulation phases

   • Hash Rate continues upward trajectory, demonstrating miner commitment

   • HODL Wave shows long-term holders maintaining positions despite price volatility

3. Mechanical Market Structure:

   • Leverage flush cascades are inevitable in derivatives markets

   • Options expiry gamma hedging amplifies short-term volatility

   • These are surface phenomena unrelated to Bitcoin's fundamental value proposition

Response to Critics:

"Energy waste" arguments misunderstand proof-of-work's security model. The energy expenditure is not wasted but transformed into irreversible cryptographic assurance. Each joule contributes to making reorganization attacks computationally infeasible. Compared to traditional financial system energy consumption (bank branches, ATMs, servers), Bitcoin's security budget remains remarkably efficient per trillion dollars secured.

"Lack of intrinsic value" critiques ignore that all monetary goods derive value from social consensus backed by measurable properties. Bitcoin's fixed supply schedule, verifiable scarcity, and censorship resistance provide mathematical certainty absent in fiat systems.

Forward Outlook:

Short-term price movements are noise. The signal remains:

• Continued network effect growth (35M+ non-zero addresses)

• Development activity accelerating (Taproot adoption, Lightning Network capacity +120% YoY)

• Institutional infrastructure maturation (custody solutions, ETF approvals)

The protocol continues operating exactly as designed. Blocks validate every 10 minutes. Difficulty adjustments maintain security. The monetary policy remains unchanged at 21 million coins.

Bitcoin doesn't need price appreciation to succeed. It needs to continue providing censorship-resistant settlement finality. Price discovery is merely the market process of understanding this value over time.

Source: CoinMarketCap

Conclusion:

Focus on the fundamentals, not the ticker. Verify the cryptography, not the commentary. The code remains open source, the blockchain remains immutable, and the network remains resilient.

Run a node. Verify the rules yourself.

• Satoshi Nakamoto

[This text was written under the supervision of the Earn News team, using an AI model that mimics the supposed style of Satoshi Nakamoto, based on historical writings. Satoshi Nakamoto's true identity remains unknown, and he has not publicly revealed himself since 2011.]