Well, that's a surprise. Bitcoin is going up again in value, and so are many of the other cryptocurrencies.
Exactly a week ago I posted an article called "Why I believe right now is the perfect time to buy Bitcoin" and I advised you to buy and hold. You can find here:
@yourmarklubbers/why-i-believe-right-now-is-the-perfect-time-to-buy-bitcoin-november-25-2021
I didn't make this prediction based on difficult mathematics or knowledge about cryptocurrency, but purely on the fact that Bitcoin reached a market cap that makes it very entangled with the real economy.
1: Adoption in society is bigger than we assume. The "normal" people now own Bitcoin, meaning for the holiday season they are looking to buy their presents. It's safe to say that a lot of Bitcoin is being cashed out to buy those presents. And when the holidays are over, what they have left will be put back in and investments will continue as usual.
2: The big whales are looking at retail companies to invest in. Because when presents are being bought, it makes sense that investors are investing in companies like Amazon that sell most of those products. I looked at the stock value when I wrote the prediction, and it was up 7.83%. Bitcoin at the same moment was down 5.20%. I assumed that after the huge spike in sales, investors are going to cash out their profits. This will likely happen shortly after these retailers present the "final numbers" of profits made.
Two days ago, Bitcoin.com reported that yes, in November, the price of Bitcoin sank below the $60.000 zone after reaching an all-time high at $69.000 per unit. The pseudonymous Bitcoin analyst and the creator of the Bitcoin price model called stock-to-flow (S2F), Plan B, predicted the last three months of Bitcoin prices correctly but the analyst’s "worst-case scenario" forecast missed the mark in November. Despite the recent Bitcoin price drop, Plan B still seems confident Bitcoin’s price is on track towards $100.000.
Cointelegraph reports today that Bitcoin (BTC) started this new month in strength and December 1's run up to $59,053 suggests that bulls are beginning to shake off the fears stirred up by the Federal Reserve's taper talks and the emergence of a new strain of COVID-19. Altcoins also saw their prices lift off and early hopes of a potential "Santa Claus rally" are making the rounds on crypto Twitter.
Let me end with this prediction: The most knowledgeable educators are predicting a value of $100.000 for Bitcoin in the first quarter of 2022 or sooner. Plan B says it might reach close to that in December.
My personal advice continues to be to Buy and hold. That at least is what I will be doing.
Sources:
https://cointelegraph.com/news/safepal-bifrost-and-request-network-soar-after-bitcoin-price-hits-59k
https://news.bitcoin.com/plan-b-says-bitcoin-price-still-on-track-towards-100k-despite-missing-novembers-price-prediction/