In New York morning trade, we are looking at Bitcoin holding below the 69,000 level and of course we're monitoring the 200 week moving average at a time where corporate treasury strategies are evolving and also in a surprise regulatory filings strategy revealed it sold Bitcoin for the first time since 2022.
Meanwhile, an internal protocol debate has reignited. over the controversial 110 proposal.
Well joining us from proof of talk in Paris to discuss Bitcoin's structural floor as well as the fight for its protocol rules is Adam Back, co-founder & CEO of Blockstream, great to have you here today.
So first and foremost, given that we are looking at red for the crypto market, what do you make of what's unfolding right now?
Uh, it look, it looks like a block trade perhaps on iB.
So probably, um, you know, perhaps a liquidation or something like that is, uh, temporarily weigh in the Bitcoin market down where The stock indexes seem to be stable.
Yes, and Adam, Strategy just filed an SEC disclosure that revealed it sold 32 Bitcoin for the first time in 4 years to fund preferred stock distributions, and this has been getting a lot of press as well as social media attention.
But what do you make of what they're doing right now?
Well, I think he presaged it in the last month, um, mentioning that they intended to sell some.
Now, I think it's really just to set the message to the market that, you know, bear in mind that some analysts look at the micro strategy, uh, Bitcoin NAV and mark it as a 0.
So he's showing that he can contribute to the stretch interest payments using Bitcoin itself as well.
And bear in mind, you know, he's bought a huge multiple of, 32 Bitcoin in, in individual days, uh, other times, right?
So I think it's just showing to the market by demonstration that Bitcoin is liquid, Bitcoin has a value and can be used to pay dividends.
Yes, and I do understand that you recently invoked Charlie Munger's value philosophy regarding 200 week moving averages.
So why do you think so few participants out there actually have the patience to stick to disciplined accumulation rather than say, active trading?
Well, I think there are, there is a contingent doing, uh, so-called dollar cost averaging.
And of course, that's a, you know, conservative thing to do with an asset that's volatile as we can see today where leverage can be dangerous.
So, um, I think, you know, the, the 200 moving average, as the MA quote says, is, is something that most people don't have the patience to, to track, but it's just saying that, you know, when you are relatively near the 200 week moving average on an asset that you think is, is a value trade, then that's the time to buy more effectively, right?
Or to, to buy in larger amount than a regular purchase.
And Adam, finally, before I let you go, I do want to get your take on governance in particular, BI 110.
So give us your quick take on the ultimate risk to Bitcoin's monetary purpose if consensus rules are used to police transactions.
Yeah, I mean, I think it's probably not going to go anywhere, but there are, you know, from time to time ideas floated and for changes to come to Bitcoin, it really requires very widespread technical consensus, a bar which isn't met here, and then secondarily, a kind of ecosystem consensus or market consensus.
So ultimately what we've seen in the Kind of now famous 2017 upgrade is that ultimately, the market prevails in, in the upgrades, which makes sense for a free market, uh, bearer asset that the, you know, the, the rules of the system, where there's any kind of debate is ultimately decided in the market, because the miners will mine, what's more profitable, the users will adopt and stay on the network that they like.
So I think that this, uh, will, you know, The activation date for this one will pass without event.
Well, Adam, we will have to leave it there for today, but thank you so much for joining us.
We appreciate your time as well as all of your insights.
