Welcome back to The Breakdown with me, NLW.

It's a daily podcast on macro, Bitcoin, and the Big Picture Power Shifts remaking our world.

What's going on, guys? It is Monday, July 8th, and today we are talking about the drop in Bitcoin prices.

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breakdown pod. Hello, friends. Well, you leave for a couple of days and Bitcoin just crashes, huh? In all seriousness,

while it will surprise you probably not at all that I am not at all concerned about these

price movements, I do think that they are notable, they're getting headlines, they're causing

some amount of anxiety, and so it's worth digging into exactly what's going on here.

And while sometimes price movements are kind of inscrutable, a weird combination of narrative

and market structure, this one feels a little bit more knowable.

So as America celebrated the holiday weekend, Bitcoin markets plunged to new summer lows.

Last week's sell-off accelerated on Thursday and continued over the weekend.

Bitcoin made two trips below $55,000 on Friday and Sunday night, and we're currently trading

around $56,000. A range of bearish narrative and market factors contributed to the largest

weekly decline for Bitcoin since November 2022. Do you guys remember what happened that month?

I'm having trouble placing it. In any case, overall, we saw a 14% drop for the week,

contributing to a 24% drawdown since the high in early June. What's more, the price action is

starting to get into significant territory. It's now comparable to the huge bull market pullbacks

from previous cycles, and some think it

could be large enough to break bullish sentiment entirely. As for what's driving this price action,

...