Bitcoin was left for dead just a few days ago. The only articles popping up in my newsfeed were of the bearish variety.
It’s easy for the crowd to bash Bitcoin lately. And you can’t blame them based on the 2018 decline of 54%. People covering crypto now obviously aren’t aware of the tremendous gains we saw from 2014 to February 2018. If they are knowledgeable of its history, they enjoy pandering to the people who missed the gravy train and are now speaking out against it.
If Warren Buffett had been an early adopter of Bitcoin, do you really think he’d have called it “rat poison?”
Bitcoin jumped around $500 from $5900 to $6400 within a few short hours. Currently, it’s sitting at $6350.
How did this happen? The short answer in just one word, “volume.” What many don’t realize is that the rise in price is dependent on an increase in volume.
As Bitcoin, and crypto in general, has fallen in 2018, so has the volume.
When the world’s first and most famous currency attracts 24 hour volumes of at least $4 billion, then its price tends to hold.
If we get back to a level of $5 billion or more trading on a daily basis we would most likely see a return of the next bull market. Am I saying that Bitcoin is ready for that right now? Absolutely not, but it does show how a relatively small increase in volume can provide an overdue adrenaline shot.
Bitcoin has bounced back each time we’ve seen a crash in price. 2018 will end no differently.
And if we fall to a price of $5,000, then you’ll be able to buy in at a level where a 500% increase in price over the next 2 years is entirely feasible.
The news headlines love to kick something when it’s down. If you’re brave enough to ignore their en Vogue sirens of despair then you’ll be in a position to be a long term winner.
You don’t have to be the most popular person in the room, just the one with the foresight to be right.