Bitcoin broke $13k today. At the rate its moving, this might not be news by the time I hit publish. $15k by year’s end is looking doable…. although, that said, 20% – 80% correction is doable as well.
So here is what you need to know about Bitcoin:
- Bitcoin is accelerating in more ways than one. The growth has been somewhat exponential, crashes shorter lived and closer together, popularity in terms of search traffic and articles written is ramping up, and generally the whole thing is beyond what even the most bullish Bitcoin zealots imagined (even those predicting X hundred thousand dollar Bitcoins are revising their projections upward). Given this, one should not rule out $15k, $20k, $25k etc in the not so distant future. Nor should they rule out a pullback of 5% – 80% (just a range of historic corrections here; I can’t see the future). After-all, this is all rather bubbly and volatile… yet at the same time, there is a serious wave of new adoption (but very little new supply).
- Bitcoin futures trading is coming soon (that isn’t necessarily a good thing given what has occurred). Futures trading essentially means that soon we’ll have tons of people borrowing Bitcoin on-paper to bet against them. If you think things have been gnarly so far, with bears and bulls who own Bitcoin directly fighting over Bitcoin’s price, fasten your seatbelt. We could see bigger increases, bigger drops, more shirts gained and lost, or perhaps even stability. No way to know what the effects will be.
- Bitcoin tends to have a nasty effect on altcoins in times like these. All coins that aren’t Bitcoin tend to suffer when Bitcoin goes up quickly or down quickly. If you own anything that isn’t Bitcoin, a few outliers aside on a given day, times like this are bad for you in comparison to Bitcoin. Ether is having a rather bad day price-wise on its own, but look at the chart for the ETH/BTC trading pair, and you’ll see a chart that looks far worse than ETH/USD. Don’t think Bitcoin doing well means cryptocurrency is doing well. The relationship works like that in the long term, but in the short term it is much more complex.
So is Bitcoin a good strong buy, or should you wait for the potential correction? Obviously no one can answer that question, but historically: Bitcoin has been a strong buy, up until the moment it wasn’t, at that moment those jumping on the train at the last minute tends to leave on filled with regret.
Thus, if you buy Bitcoin today, average into your position and be ready to buy more on the potential correction.
Sometimes waiting for a dip means waiting for an event that will never occur. Sometimes jumping in at the last minute due to a “Fear of Missing Out” means buying at the top and feeling foolish (that will then go on to mess with you psychology moving forward; not the road you want to go down). Averaging and hedging helps to avoid those bad feelings and keep crypto fun.
"Bitcoin Breaks $13k (Subject to Change)" contains information about the following Cryptocurrencies: