I recently asked at when people believed we would see a Bitcoin correction or stabilization. Seems it might have come sooner than expected. I can only imagine that for many crypto newcomers (which there are always tonnes of with every bull season) today’s steep falls across most coins must have hurt. But for those of us who have been here for a while, this is hardly newsworthy (although my stomach isn’t completely used to it yet).
Percentage-wise, this drop in prices is just the same as when BTC dropped from 12k to 10k in September, or from 10k to 8,2k in May. That said, it is perhaps noteworthy that this drop from 58k top to 45k bottom (so far), means a greater reduction in market cap than the total market cap of BTC through most of 2020.
That said, this is how it’s always been, and how it will likely continue to be for more years and bull/bear cycles to come. Yellen’s comments about BTC, and it’s apparent impact on price, is very similar to what we’ve seen when other “influential voices” of the past have made similar comments (anyone remembers JP Morgan?). It’s funny how the comments about Bitcoin and cryptocurrency just keep on reaching a higher and higher levels in the establishment hierarchy to which people look for directions.
But as always, the “bad news” hits, the storm calms, and the ship carries on. Only this time, however, knowing that it survived another and harsher storm and is thus increasingly confident in its resilience. So with Yellen now “out of the way”, who’s next and “above” her in the journey to the final boss of the game? Or what will happen when there’s suddenly no more imagined ceilings or perceived “influencers” capable of controlling Bitcoin?
And before you think it's only in the world of crypto that is seeing red these days, the biggest Tech stocks are also down 5-20% the past 2 days. Yet they're likely to continue being the best bets long term, as they have been for the past decades.
So what should you tell yourself on a red day?
Price only matters the day that you buy or sell a token.
How the rollercoaster ride in between looks retrospectively will then be irrelevant.
So keep HODLing and put in small efforts every day to increase the number of tokens that you believe in long term, whether that’s BTC, is there anything else? Well, those three then.
Enjoy the rides!