 Bitcoin traders share their ‘PvP’ views on BTC’s recent price weakness 
2025-01-13
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Bitcoin’s price whipsaws were the dominant feature on display over the past week as crypto and equities markets digested newly released US economic data, and a startling uptick in Treasury yields was followed by a sharp correction in BTC (BTC) price, the DOW and S&P 500. 
Looking beyond the traditional finance markets, Bitcoin’s Jan. 6 rally above $102,500 led technical traders to believe that an ominous head-and-shoulders pattern had been invalidated and the possibility of a dip below $90,000 had been avoided. In addition to the negative impact rising Treasury yields had on markets, rumors that the US Department of Justice had received court approval to sell $6.5 billion worth of Bitcoin seized from Silk Road added to the bearish sentiment that was driving price action within markets. 
Popular options trader Tony Stewart tweeted his view on how the market’s most intelligent traders would react to the news of the week, saying, 
Snap decisions based on headlines without deeper tldr.
This is the CT way.
In this case, Bears will push narrative lower until momentum repels, Bulls will hedge/cut/take a paper loss until resolved.
Whereas the larger houses should all know by now.
They've read the details,… https://t.co/sn9QBSe3Q2
Among crypto traders, there’s a unique strategy to interpreting sentiment data and pending yet unconfirmed bearish events to one’s advantage. A brief outline of this is outlined below: 
To add more color to the above, Cointelegraph spoke to 1971 Capital chief investment officer Brian Russ to explore how he and his firm were digesting this week’s news and price action. 
Russ said that “the exact path is hard to define simply because of multi-variance,” adding that the market now has “many large global players, so it’s hard to isolate one group of actors as impacting price on the margin.” 
Regarding TradFi-linked Bitcoin trading volumes on Jan. 6 (a national day of morning for former US President Carter), Russ explained that “ETFs only represent roughly 3% of the daily average volume ($1.5 billion versus $50 billion), so it's not a huge factor that markets were closed on this day.” 
Russ said, 
Considering the potential for speculators to move the price needle by exploiting light liquidity zones and bearish news headlines, Russ said, 
Traders agree that ‘PVP’ is always happening in crypto
Generally, traders seem to agree that bearish crypto headlines tend to move the price needle more than the actual event occurring since markets have a tendency to price in events once the shock of the news headline contrasted against the actual asset fundamentals take away some of the perceived impact of a potential black swan event.
Take, for example, Pear Protocol founder and former equities trader HUF, who said, 
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.