Now, ever since the recent price surge of Bitcoin, everyone seems to have something to say about what's going on here.
So I just thought to throw mine in.
First, let's talk about this Fed rate cut.
A cut by 0.5% is no joke, and it is no wonder that in its wake, Bitcoin shot up. We are looking at more than $63,000 now and thats mightily impressive, considering where we were a week ago.
But I'm not completely convinced this is the start of the "real" bull market everyone has been waiting for.
Mind you, I am as thrilled as the next crypto enthusiast by the gains, but I have been in this place long enough to know that nothing is as easy as it seems. Those analysts were quick to throw numbers out there for a bull market that was supposed to start today or in the next 15 days.
I take this with a huge grain of salt.
Of course, the halving is a big deal, it is always a catalyst that moves the commodity price in one way or another. But seriously, to believe we can predict with precision what time it is going to change is somewhat naive. The crypto world moves fast, and there's so much in play rather than just the halving.
And about this open interest situation, with over $18 billion in open contracts, that is not something at which one could exactly sneeze. That indeed does indicate we are in for some volatility, but if that is to go upwards or downwards, well, that is anybody's guess. I have seen far too many people get burned because they assumed high open interest always means a bull run is coming.
My take is that Bitcoin's equally likely to drop back down to 50,000 as it is to shoot toward 80,000. Liar or at minimum, delusional is what you should be calling anybody who tells you they know for sure which way it will go.
What I do know is that Bitcoin and crypto in general is a maturing market.
We do see more institutional interest, we do see more discussion around regulation, and we are seeing more integration with traditional finance, so all good news for the long-term health of Bitcoin and the broader crypto ecosystem.
But short term? It's chaos out there.
The best advice I have?
As always, don't bet more than you can afford to lose, and don't let the hype cloud your judgment. I've seen too many people get caught up in the FOMO and make rash decisions.
For my part, I remain cautiously optimistic. I've always believed in Bitcoin's potential, though I surely am not about to go all-in based on an analyst's prediction or a temporary surge in price. I lived through enough bull runs and bear markets to know patience and a level head in this space truly are a person's best friends.
Posted Using InLeo Alpha