Why is Bitcoin still down and are banks shorting MicroStrategy?
Even though liquidity is expanding, investors and banks might still be cautious.
Bitcoin fell back toward $90k, and it wasn’t just random. Several things hit the market at the same time.
The China tariff news started the drop
Trump announced 100% tariffs on Chinese imports. Markets instantly went risk-off, and Bitcoin dumped with everything else.
October 10 liquidations made it worse
The market was loaded with leverage. When the price dipped, it triggered automatic liquidations, which caused even more selling. It turned into a chain reaction and wiped out a lot of traders in minutes.
Banks shorting MicroStrategy?
Short interest in MicroStrategy was already high before the drop. Intentional or not, when big players lean on a thin market, they can move prices fast — and that seems to be what happened.
M2 is expanding, but the money isn’t coming into Bitcoin
Yes, global money supply is growing.
But the problem is: the new liquidity isn’t going into risk assets.
It’s going into government debt, money-market funds, and basically “safe” places. So even with M2 rising, Bitcoin isn’t getting the benefit.
So why isn’t Bitcoin going up?
Not enough real spot buying
Money staying defensive
Institutions scared after the big wipeout
Easy for whales to push price around when liquidity is thin
In simple terms:
There’s more money in the system, but very little of it is flowing into Bitcoin right now.
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