What an incredible day in the world of crypto and finance today was. It will go into history as bitcoin making another all time high price. This week was interesting. The way bitcoin's price has been moving, almost everybody was anticipating that it was going break previous all time high price and go above $69K. Ant it did. On Tuesday bitcoin's price reached $69,300. But as soon that happened priced dropped as low as to $59K. It was great to see another all time high. Not so great to see a $10k drop the same day. However, it didn't take long for bitcoin to recover back to mid 60K and then make another all time high today. Bitcoin crossed $70k. It has not stayed above $70 yet, and it didn't drop too low either. As I am writing this post, bitcoin's price is above $68k. Amazing!
Prices go up and prices go down all the time. Nobody can predict the future all the time. We can only look at the past and give our best guess. When it comes to bitcoin's future prices, one thing has been a consistent - its ability to go back to previous all time high prices and making new ones given enough time. This time hasn't been a super long either. Usually people like to define the time range for bitcoin to make new all time high in 4 year cycles. We can we high confidence assume that if we can wait 4 years, bitcoin will at some point within this time range go back to its previous all time high price. Well, it did it again. All bitcoin investors are in profit now. We are not done yet.
What now? What's next? Sentiment around bitcoin and crypto is bullish. Greed levels are high. FOMO is strong. None of this guarantee the upwards trend though. Nothing can. There are many unknowns that may change the course and it is within realm of possibilities this trend may change direction. I am not worried though, neither are many crypto enthusiasts and advocates for decentralized systems. Even if things took bearish turn, we once again has been shown that bitcoin will always go back to its previous highs. It may take couple more year or four, but this phenomenon continues to repeat itself. That said many things that we witness point to continuation of the bull run and making significantly high prices. What is a bull run if bitcoin can't double its previous all time high price? And there are many upcoming events to anticipate that may facilitate bigger movements in price, more exposure and interest in the technology, and broader adoption.
Another great news was that Ethereum broke $4k. While this not another all time high for Eth, it is a great milestone in price action. More great things to see in Eth it seems. Not only Eth other alts have been making upward movements. What is great about bitcoin's new all time highs and bullish trend is when it slows down we get to see alt-coins appreciate in value as well. Hive has been moving up slowly in price as well. What we are looking for in Hive is also another all time high, and regaining billion dollar network valuation. Many of us hodl other coins and token as well. This year might be the one that produces another awesome alt season.
Everybody keeps saying this time things are different. This time ETFs are here, institutions are involved, governments contemplating investing in bitcoin, companies are more open to implement MicroStrategy like treasury policies, etc. Isn't every time different? That is what I believe. Sure there are similarities of how things go each cycle. But each cycle is completely different, each year is completely different. It may seem like we are going in circles when we actually are spiraling upwards. Institutional involvement in bitcoin, government's considering bitcoin, big money coming to bitcoin was always in the roadmap. Yes, bitcoin is people's money. Yes, bitcoin is the best money. It is also an open network without bias that welcomes anybody to join or leave the network. Over time it is inevitable to all participants of money networks to discover a better money.
It may seem like with bigger funds in play, bitcoin will become more centralized and become less accessible to regular people. That is not completely true. Bitcoin will always be available for everybody. We are just entering the Satoshis era. It never was necessary to buy a full bitcoin to be invested in the network. There has always been an option to buy Satoshis. As the price of the bitcoin continues to increase, many ordinary people may not be able to buy full coins anymore. However, everybody will still be able to buy Satoshis and still be part of the network and have better investment than other investment instruments. It was inevitable for bitcoin's price to rise higher and higher, regardless ETFs would be approved or big money would flow in or not. It has managed to do so without ETFs for more than a decade. This all time high was going to happen regardless what others think or do. It may have take a bit longer though.
I didn't expect bitcoin to reach previous all time high until the end of this year. The halving event didn't even happen yet. It is about a month away. Halving will be happening soon. Fed hasn't cut interest rates yet either. That is probably going to happen sometime this year as well. That would also bring more money flow into bitcoin. The bitcoin accounting rules are available for companies now. This is a new things and it will take time for companies to consider their options as well. As all of these events are happening there will be ongoing generational wealth transfers where more an more bitcoin minded people will end up with funds to invest. Things are looking good for bitcoin, not because it is a speculative asset. Because it solves an important problem. It provides a strong money that nobody can tamper with, it provides more honest, transparent and efficient financial system.
Big fund managers, institutions, companies, governments can enter the space and become participants of the network too. And that is going to happen wether we like it or not. It is already happening. But none of these participants will be able to control it. The system will defend itself just fine against any monopolistic ambitions. In fact, it would be foolish for anybody to even consider that. The opposite, I believe, is and will be happening. Big money will continue to enter the network not to control it, but to be part of it because it has proven to be trustworthy without trusting anybody. It is an awesome money for people. It is also an awesome money for institutions.
Nobody knows what tomorrow will bring. Today was a win. It was win for bitcoin. It was a win for decentralized systems. Congratulations to all hodlers. Looking forward to see a day we celebrate the same win for Hive. I will have much more to say about Hive.
Posted Using InLeo Alpha