Bitcoin Bear Market Not Driven by External Factors, AllianceDAO Co-Founder Claims

The cryptocurrency market has been abuzz with explanations for Bitcoin's prolonged downturn. Various narratives have emerged online, blaming everything from alleged trading strategies to emerging technologies. However, the co-founder of AllianceDAO, qw, disputes these oversimplified explanations.

In a recent social media post, qw emphasized that Bitcoin differs fundamentally from traditional assets because it is not anchored to corporate earnings or discounted cash flows. Its valuation is largely influenced by market sentiment, liquidity cycles, technical trading patterns, and shifts in investor psychology.

qw argued that Bitcoin's price movements are better understood as part of broader cyclical behavior in speculative markets, where crowd sentiment, leverage, and positioning amplify moves in both directions.