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Comment by mudrockbestgirl | Hacker News Reader

I'll never understand these arbitrary numbers people come up with to write news articles. As if $20k is any more special than $20.313k. Liquidity isn't even concentrated at round numbers.

The only key threshold is zero. Like, you know, the thing Tether hopefully converges to.

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This one is a little less arbitrary. The community put a lot of stock in the fact that while volatile, bitcoin had never crashed below a major previous peak.

As of this morning, that’s no longer true. Still “just” psychology, sure, but the collective impact of that psychology makes the market.

Does anyone seriously studying economics seriously make a distinction between market behavior and psychology anymore? It seems like the Homo Economicus rational optimizer idea is dead to all but those ideologically committed.

Aside from psychology, a lot of people set triggers to sell if it drops below these round numbers. So once it "breaks a barrier" it's likely to go done further than if it breached $20.313k

Also algo trading....

Reasons are journalistic. People need explanations and stories. The complexity that real world offers doesn't make a good story, but sounds just boring and doesn't collect clicks.

The market is made up of a lot of human participants who do consider 20k to be an important number for a variety of reasons.

It's below the peak before the 2017/2018 crash happened?

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