For most of bitcoin's existence, what appears to be volatility is just the market trying to determine the price of a new asset. But even as it's become more widely adopted it seems that the biggest downward driver on price is bitcoin's liquidity.
It can be so instantly and easily turned into cash. 24x7. So anyone financially compromised turns to their most liquid asset: bitcoin.
When markets drop in property, stocks, forex or even altcoins - bitcoin drops. From FTX to Japan raising interest rates just a quarter of a percent. A lot of people turn their bitcoin into dollars and there's a dip.
Worse, because it's expected now, people sell to avoid the paper loss.
I'm interested to hear people's views on this trend and if, how and when the pattern might be broken.
And is particular, has it kept bitcoin's price lower than it otherwise would be, or are prices recoveries 'complete'?