Ignore the Noise

Happy Tuesday to all you Bitcoiners out there (hope you’re staying warm amidst this winter freeze).

Headlines this week screamed about GameStop dumping Bitcoin. Immediately after, crypto media ran with the "Is a Major BTC Sell-Off Coming?” clickbait.

But there are real stories worth your time:

• The Saylor protocol debate that's splitting Bitcoin Twitter

• What GameStop's move actually means (hint: not much)

• A BTC/Gold chart that just hit a historically significant milestone

Let's dive right in!

1. The Saylor Protocol Debate

Michael Saylor did what he does best and dropped a grenade into Bitcoin Twitter this week.

Mert Mumtaz, CEO of Helius, fired back that Saylor’s tweet was representative of an "absolute cancer of a mindset".

The debate cuts to Bitcoin's identity as a protocol. Should the protocol freeze to preserve its current monetary properties? Or evolve to address threats like quantum computing and spam?

This isn't theoretical anymore. BIP-110 (the soft fork to filter non-monetary data) has reached 2.38% in support from the Bitcoin nodes. The spam wars are becoming an on chain vote.

But the ossification camp isn't unified. Adam Back actually opposes BIP-110, arguing Bitcoin already has a spam filter: fees. "The brilliant and already embedded mechanism... forces spammers to pay genuinely" he said on Twitter.

Meanwhile, Coinbase just formed a quantum computing advisory board to broadcast their stance on the matter. The threat may be 5+ years away, but protocol transitions can take longer than that.

Saylor now owns almost 4% of all Bitcoin that will ever exist. Of course he wants the protocol frozen. But his position is more nuanced than Twitter suggests. In Dec ‘24 he clarified that he actually supports inscriptions (just not on Bitcoin’s base layer).

"Innovation at the application layer, not the protocol layer".

Whether that distinction holds as threats evolve remains to be seen - either way his incentives are clearly in favor of a stronger Bitcoin over the long run, which I think we can all get behind.

2. GameStop: Clickbait vs Reality

Now for the headline that had everyone spinning.

CryptoQuant flagged the move Friday: GameStop transferred its entire 4,710 BTC to Coinbase Prime, leaving its on-chain wallet empty.

Cue the panic. "GameStop dumps Bitcoin!", "Corporate treasury collapse!", "Is this the start of a sell-off?".

Relax people - let's slow it all down.

First: we don't actually know they're selling. Coinbase Prime handles custody, trading, and financing. Moving coins there doesn't confirm anything.

Second: even if they sell everything tomorrow, the market impact would be... basically nothing.

Bitcoin trades roughly $40-50 billion per day. GameStop's 4,710 BTC (~$420M) represents about 0.01% of daily volume. That's a rounding error at best!

Yes, GameStop is sitting on a paper loss. They bought in May 2025 at ~$107,900 per coin. Current price is around $89,000. That's $80+ million underwater. And yes, the optics aren't great - Ryan Cohen met with Saylor, bought the dip, and eight months later might be selling it.

But if you're worried about price impact, don't be. This isn't a market-moving event. It's a narrative event magnified by media seeking your engagement.

The real contrast? While GameStop potentially exits at a loss, Strategy added 37,000 BTC in January alone - including a $2.2 billion buy last week - all while trading below their own NAV.

P.S. In the long run, conviction is what separates the Bitcoin tourists from long term Hodlers. Want to be on the right side? Rhino offers the lowest fees when you buy your Bitcoin through Rhino’s app.

3. BTC/Gold: 14 Months In

André Dragosch, Head of Research at Bitwise, posted a chart this week worth paying attention to.

The average BTC/Gold bear market duration? 14 months.

How long have we been in the current one? Also, 14 months.

Previous cycles in 2015-16, 2018-19, and 2022 all lasted roughly 13-14 “bars” (each 1 month long) before reversing.

If history holds, we're at the inflection point. What would break the pattern? New lows through Q1. If we're still falling by March, we're in uncharted territory.

Last week we told you Bitcoin failed the digital gold test when tariffs hit. Gold surged past $5,000. Bitcoin dropped. That's still true - Bitcoin isn't trading like a safe haven yet.

But the tourists are leaving and the OG believers are still here buying. Point being, if you're waiting for the perfect entry, you might miss the turn.

The Final Word

Saylor wants protocol stability because he believes Bitcoin's value comes from its monetary properties. Developers want evolution. Adam Back thinks fees should decide. The debate is real, even if the battle lines haven’t been clearly drawn.

GameStop may be exiting - but even a full sale wouldn't move the needle. Don't let clickbait headlines shake your conviction.

And BTC/Gold just hit 14 months of underperformance - exactly where previous bear markets have turned.

The market noise is once again loud this week. As a Bitcoiner, its your job to tune it out.

Chat next week,

- Hector