Welcome to the Bitcoin Lighthouse newsletter by Lightning Ventures

Bitcoin crashed by 8% today, and we explain the trigger for this crash.

📈 Bitcoin Price

🌡️ Bitcoin Temperature

The Bitcoin Temperature is at 2.9 and continues in the neutral zone.
Read my article explaining what the Bitcoin temperature is.

👍 Highlights

• 🥊 Why did Bitcoin crash by 8% today
• 👺 A rundown on the crypto "crackdown" bill
• 🔍 Bitcoin insight: 🗝️ Unveiling the secrets: Finding the correct Bitcoin allocation

🥊 Why did Bitcoin crash by 8% today

• Bitcoin crashed by 8% from $44,100 to $40,350 and recovered to $41,800 -5%.

• This drop occurred after Bitcoin moved up for 8 consecutive weeks for the first time since 2017 and doubled in price.

• The trigger for this correction seems to have been the introduction of a crypto "crackdown" bill by Elizabeth Warren.

👺 A rundown on the crypto "crackdown" bill

• US Senator Elizabeth Warren introduced a bill aimed at regulating cryptocurrencies more strictly.
• The bill would hand more power to agencies like the CFPB and SEC to oversee the crypto industry.
• It would require crypto exchanges to obtain federal licenses and follow banking regulations.
• The bill proposes stricter anti-money laundering rules for transactions involving self-hosted wallets.
• The bill faces an uphill battle to pass but signals greater regulatory scrutiny of crypto.

🔍 Our View

• This is an effort by misinformed legislators who believe in a surveillance state.
• After a bullish run, this triggered a shakeout of weak hands, and we think that Bitcoin will resume its bull rally.

🗝️ Unveiling the secrets: Finding the correct Bitcoin allocation

Read my Bitcoin insight article to understand the "right" Bitcoin allocation for you.

🃏Meme Corner

👨‍🏫 Learn Bitcoin

If I had to recommend only one book to learn about money and Bitcoin, it would be The Bitcoin Standard.

Let us know your comments, feedback and questions below.

By Sandeep Goenka
Partner at Lightning Ventures