Why Bitcoin Is Down, Plus the Rare Bright Spot in Crypto: Hyperliquid

Think we're we're we're starting to see, like, more a greater demand for transparency, for accountability, and, I I do think, like, the the stuff like the market structure bill will just accelerate that. Hi, everyone. I'm back now with Joshua Lim, global co head of markets at FalconX. Welcome, Josh. Thanks for having me. Great to be here. So, wow, we are in a position with these crypto markets where things aren't looking super pretty, and, Bitcoin just fell below 74 k. And I was wondering if you think we're at the bottom or, you know, where you think we are right now in the crypto markets. Yeah. You know, I mean, these levels are obviously, distressing for anyone who's worked in the industry for quite some time, but also significant because these are levels that, were only previously seen prior to the Trump election. So in many ways, like, we've given up a lot of progress on price even though, in terms of innovation and adoption and just the broader growth in ecosystem, and think about all the developments that have happened over the last year, especially with Hyper Liquid. You know, there's there's been very little to show from a price perspective. Even you could argue that we've kind of moved backwards if from the perspective of many different altcoins, and governance tokens that are staples of a lot of fundamental portfolios. And then so what do you think is driving this downward, price action? Yeah. And I think, you know, you you're asking kind of what what is the, you know, the the sort of forecast from going forward from here. I think it's, entirely gonna be a function of how well risk assets can hold up. Right? If you look at across the board, other asset classes, everything is, still near all time highs. Right? And a lot of that is because of the way, the dollar is behaving. The dollar is weaker, and that generally is a boon to other risk assets. That has not translated to Bitcoin, and to to crypto generally. And we're so used to seeing the phenomenon in crypto trading alongside stocks or other risk proxies in a, correlated way. Right? And so this very large divergence, and and in particular, I think the the most stark divergence is between Bitcoin and gold. That divergence is wreaking havoc, right, with our whole industry and kind of how people are positioned. There is a there's a chart that a lot of people are circulating, which is basically a chart of, global liquidity overlaid with risk assets and then another one with with Bitcoin price. And Bitcoin is the only chart that's pointing downwards while everything else is, you know, up into the left, up into the right. So that's very unusual. I think if we kinda dig into that and try to figure out what's the underlying cause, there's two things in my mind. One is, you know, obviously, it's a …