The last couple of days were intense. In trading jargon, there was "blood on the streets". Bitcoin fell from $53k, a level labeled by the majority of analysts as "key", down to $42k, and now it corrected up to $49k. Quite the roller-coaster, right?
Well, I don't know.
We have this saying in Romanian: "furtuna intr-un pahar cu apa". Which literally means "a storm in a glass of water".
I mean, if you shake a glass of water, and narrow your focus only to it, things will look pretty bad. Maybe you'll even spoil some water around. There will be waves. There will be drops jumping out. Inside, and around that glass, there will be chaos.
But the moment you look just half a meter away from the glass, things won't look as bad. Even more, if you look up the window, and see, let's say, a calm lake near the cabin where you're spending the week, there won't be any storm at all.
See, it's the same with Bitcoin.
Keep your focus narrow enough, and all you'll see will be carnage. Just as real as that storm in the glass. I don't deny the price went down fast, just as I won't deny the spilling from a shaken glass of water. Both were real.
But does it really matter in the grand scheme of things? Does it even qualify as a storm? If you compare the lake outside your cabin with the glass of water, nothing really happened.
I know this may sound like some sort of a cult thinking, like blind faith, or dogmatism. It's not. It's all numbers.
Exactly 365 days ago, Bitcoin was $19.7k. It went down to $18.3k, on December 11 2020, and after that, it only went up. Compared with the beginning of the 365 days interval, Bitcoin was depreciating only 13 days. For the rest, it went only up, more than 150% from the initial value. Of course, there were corrections at times.
But it never visited that level again.
Zoom out. Get a better perspective. Don't stare at the storm in the glass of water, keep your focus on the lake.
$49k versus $19k, in 365 days. You do the math.