Was $42,000 the Peak for Bitcoin? Crypto Bull Market Over?

in LeoFinance5 months ago (edited)

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It's been a crazy week in the crypto world. After reaching a high of $42,000, Bitcoin experienced a hefty 30% correction.

Was $42k the peak for Bitcoin? Is the bull market over, or can we expect higher prices from here?

Let's talk.

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I think the problem in assuming that $42k isn't the top are the buyers.
Never before have the buyers of Bitcoin been such strong hands.
It makes sense that they wouldn't FOMO at the top and spike it.

Certainly the 2021 Mega-bubble isn't over... but I think the Q1 bubble very well may could be.
Quite frankly, I'm expecting a crash to $20k in March before we can ascend x10 over the next 3-5 quarters.
At the same time, don't be surprised if we see FOMO trading right after Biden takes office.

$50k def still on the table in the short term.

It's crazy how no one sold during this dump. No one wants to sell before 50k. Most people don't want to sell before 100k. And a lot will only sell above 200k. and we really mean it.

That's why I think we might overshoot all predictions.

If you've been listening to Michael Saylor at all you will realize that $42k is nowhere near the top during this bull market.

What he has been saying makes me wonder what the bear market after this will be even like. Saylor has said that he doesn't even consider stock to flow as relevant as the absolute supply cap that Bitcoin has. He's buying shares of the 21 million that will ever exist.

What Saylor is interested in is the ability to transmit value across time and space without it degrading as in the case of every other asset in existence. In a discussion with Raoul Pal he said he had asked the question of how he could best send 100 million 2020 USD a hundred years into the future without it depreciating. Cash is trash. Government bonds? Laughable. Apple stock? Apple may not even be around 100 years from now. Gold? What if better gold extraction technology or asteroid mining or something made gold's stock to flow worse? How about acquiring another company. Saylor noted that most acquisitions fail unless what is being acquired isn't a much smaller company.

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So true. Even if you don't have $100 million to preserve, you still have a similar problem, just on a smaller scale xD

The world really needs a more reliable store of value than anything in existence today, but then again, a fundamental truth about the world is that everything degrades. What follows from that is that a perfect store of value can only exist insofar as people other than its owners are imposed an obligation to compensate for the inevitable loss of value over time. That is the only way a static store of value can maintain all of its value over long periods of time.

In my opinion, a healthy situation is such that a small loss of maybe one to two percent is incurred annually when holding a store of value asset. A healthy civilization is in a continual process of building and renewing itself.

Bitcoin will continue to appreciate by leaps and bounds in the near future only because it's in its infancy in terms of adoption.

But I do not share the wild fantasies of Bitcoin maximalists who think Bitcoin will eventually subsume all value. What it will end up as in is a store of value asset owned by major corporations, governments and central banks who need store of value assets as a source of stability. Its value will be vastly larger than it is today. It will eat precious metals for breakfast and suck much of the store of value component from things like real estate. As a store of value asset Bitcoin is superb as it has a hard supply cap and because its completely immune to depreciation by technological innovation. Its core property is synthetic scarcity which is what it implements as well as it is necessary to implement.

The world will come to see the value of Bitcoin in the coming decades. Humanity used to have reliable stores of value in the past but even things like real estate are ultimately subject to the whims of humans as alterations in zoning bylaws can drastically alter the value of any piece of real estate. Gold is probably the most reliable store of value at the moment but it, too, will not probably stand the test of much more time when human civilization expands beyond the limits of the Earth and starts making full use of all the resources in the solar system.

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Bitcoin to me is unpredictable. The right way to go about it is, sell when you need money and buy if you have excess cash. Regardless of the price

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Hello @louisthomas, how bad I would not have wanted to read this, but hey will be back.
Let's keep working and supporting each other to grow at Hive!...