Did Bitcoin Fly too Close to the Sun With $6k. Or, is it Going to the Moon?
Bitcoin hit $6k today (Oct. 20th, 2017). That is impressive growth. The question is, “did it fly too close to the sun; or, is it going to the moon?”
That is the News.
Below is opinions and insight into those facts. This is meant as an educational look at where we are at with Bitcoin today. It is not meant as actionable investment advice.
The first thing I’ll say is that this is different than when it hit $5k back in early September. That is because that high was paired with bad news (China bans), and this is paired with mostly good news (upcoming forks, state-backed Russia crypto, rumors of no China ban… essentially everything is positive aside SegWit2x head-butting).
Thus, one could see BTC flirting with $6k this week and not dropping like a rock after hitting it (like Icarus flying too close to the sun). Heck, one could even see BTC ripping past $6k like it did with $5k last time and “going to the moon.”
Of course, I don’t know, and I’m not going to draw lines on a chart to imply that I do. This site is about following the crypto journey and learning about crypto. Thus, its about reporting on milestones. It isn’t about telling what investments to make.
In fact, this page really isn’t about anything more than jotting down in journal “dear online blog-type-thing, today I saw BTC hit $6k…”
One jots down this sort of thing, and speculates a bit, because next week, next month, and next year will happen. And we need to remember what we thought then. Will it be obvious that everyone got manic? Or, will we be like “wow, it was only $6k?!”
Back in 2015 I cautiously warned readers about $1.50 Litecoin and $225 Bitcoin. After-all, I had seen the 2013 crash, and I knew the risks of crypto investing. Obviously that looks silly now, so when I cautiously warn you about buying in these uncertain times, we should all hope in another two years I look silly again.
I can deal with looking silly and offering insight into the basics of everything crypto so you can make up your own mind on buying/selling/investing… I don’t want to be the one telling you whether your should bet on Icarus or Daedalus. I’m also not going to try to get you to buy MLM (multi level marketing) products or go long in the S&P volatility index (unless you use it to hedge against an investment in the S&P).
With all that said, my point aside publishing my journal entry, is that (given the upcoming forks, lack of word on China and Russia bans, and lack of bad news) think it is likely we will see more growth for BTC before we see the next pullback. That means it is likely we will see Alts play catchup (as when BTC goes high, alts tend to ride its tailwind… that is, after everyone pulls their money out of alts and puts it in BTC).
Who knows though. At this point some bad news or a change in the weather could melt the wax right off BTC’s wings as easy as a little excitement could result in crazy BTC growth by Christmas.
The thing about speculation is, no one knows, and how could they? Its not like we can figure out Bitcoin’s earnings per share or anything. All we know is the supply and the cost of mining. Thus, we can safely say BTC will likely have a value of somewhere between $1,000 and $10,000 by Christmas… and we can assume that alts will follow suit or not. That is, literally, no one knows how close to the sun-and-or-moon BTC will get, nor do they know the integrity of its wings.