The Investor's Podcast (We Study Billionaires) - The Investor’s Podcast Network BTC024: Plan B & Adam Back on Bitcoin Contango & Derivatives (Bitcoin Podcast)
May 5, 2021
In this engaging discussion, Plan B, the creator of the influential stock-to-flow model for Bitcoin, teams up with Dr. Adam Back, co-founder of the leading Bitcoin company Blockstream. They dive into the current market conditions and the implications of the massive contango trade for Bitcoin's future. The duo also explores Bitcoin fungibility, the recent drop in hash rate, and the exciting potential of Lightning Network adoption. Their insights on where we stand in the market cycle are both thought-provoking and informative for any crypto enthusiast.
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Bitcoin's RSI Peculiarity
- PlanB uses the weekly Relative Strength Index (RSI) as a situational awareness tool for Bitcoin trends.
- He notes Bitcoin's RSI behavior differs from traditional assets, often exceeding overbought thresholds during bull markets.
Market Buoyancy and Buyer Behavior
- Large buyers accumulate Bitcoin during pullbacks and store them, contributing to market buoyancy.
- This activity, combined with institutional interest, creates a positive feedback loop of confidence and price support.
Institutional vs. Human Nature
- Institutional investors' entry into the Bitcoin market is a key differentiator in this cycle.
- However, human nature, with its greed and fear, continues to influence market volatility.