The U.S. SEC explicitly requires brokerages to include 2% of their stablecoins in net capital, whereas before it was not included at all. With this requirement, brokerages need to have 2% of their holdings accounted for, which can be understood as needing to set aside 2% of the funds that cannot be moved. If they currently hold coins, they will need to sell a portion.

Just like banks used to have no reserves, and in extreme market conditions, bank runs could lead to insolvency, but with reserves, they can manage risks. Brokerages are the same, especially those holding a large amount of various tokens. They only recognize stablecoins; holding Bitcoin is not recognized in the same way. Therefore, they need to sell and convert some assets to meet SEC requirements and their own target amounts.

This is why prices are falling. Now gold has risen again, reaching 5170. That is real hard currency. Bitcoin is a risk asset.

I remember once in a live stream, someone asked me whether Bitcoin is a risk asset or a safe haven asset. I said it’s a risk asset. They asked why it’s called digital gold then. I said because someone is trying to fool you. The difference in understanding really is a chasm that needs to be crossed!

Awakening is an internal transformation. When you become stronger, all problems become weaker!