The price of bitcoin has gone from reaching an all-time high price of $42,000, to now dipping under $30,000. This is enough to make even the strongest HODLERS around us to begin second guessing their confidence in this bull run and where the price is going!
I'll admit that even I; once of the biggest bitcoin bulls that you will find, began feeling a little down in the dumps the last few days. Maybe even starting to consider that perhaps everyone was wrong and it could be possible that this bitcoin bull market is already finished.
IT ISN'T.
There is a tremendous amount of FUD happening in the industry right now and we all should have seen this coming. Bitcoin, ethereum and other cryptocurrencies were soaring in price extremely fast. And this caused the bigger players to step in and disrupt the movement before it was too late. Who are these big players!?
Well the interesting thing is that it isn't just one group, but sets of many different groups. Of course you have the whales performing this, but then also there is now hedge funds, and also the government. At the moment they have been manipulating the price movement, or the industry news to better suit their goals.
But what are their goals?
Well for bitcoin whales the answer for this is very simple. The whales main goal is the same as it always has been; and that is they want to accumulate as much bitcoin as possible. They will take advantage of FOMO and sell huge bags or short to make the price drop, or they will heavily buy and long when the price is low. All of this increases their own portfolio and goal of accumulating. For many whales this could be one of the last times in the bitcoin market while they are still able to wield the power to achieve this result. As the market cap of bitcoin grows into the trillions and perhaps many trillions of dollars worth; then it will require an obscene amount of funds to achieve this price manipulation. Something that even current whales might not be able to achieve.
Next you have the hedge funds who are very new to the bitcoin market. Hedge funds actually act very much like whales in that their main goal to accumulate as much as they possibly can while also making as much money as they can too. They will lie to your face all day, saying that bitcoin is the worst asset in the world and they would never buy into it. But while saying this they are in-fact already buying it. Or another scenario is that many hedge funds/institutions were caught off by the extremely fast bitcoin increase and actually haven't bought any yet. They will then say or do possible to bring FUD to the market, causing the price of bitcoin to drop. And at that moment they will purchase all of the bitcoin that was sold, all for a cheaper price.
Then finally you have the government strongly participation in the FUD for bitcoin. Just as the price began increasing news appears that the government was looking to add crypto wallet regulations as soon as possible. And that ended up being true, that Steve Mnuchin was in-fact trying to quickly push through these cryptocurrency regulations before his term of office came to a close. Thankfully as the Biden administration took control of the White House, they immediately froze all previous bills that were in progress, thus also freezing this bill.
But then came more government FUD. The woman who would eventually replace Steve Mnuchin also delivered massive FUD news for not only the cryptocurrency markets, but also equities and anything that people invest into. Janet Yellen's idea was that all profits, even if they were "unrealized", would still be taxable. This would cause extreme chaos in the investing world. The news story was everywhere last week, and upon being confronted about it, Yellen would then concede some ground in her previous statement.
These are only just 3 examples of the recent FUD that has been spreading recently. But you need to begin asking yourself, why all-of-a sudden all of this has began to happen?
The most powerful players in the world, are becoming scared. There is a very real possibility that bitcoin could overtake the US dollar and become the next world reserve currency. This is no little thing. In the past, wars have been fought between countries for whose currency would reign supreme. They who control the currency, hold all the power. So you better be ready for the government to not give up to easily.
There is a famous phrase that really applies well to this situation.
"First they ignore us, then they laugh at us, then they fight us, and then you win."
The most important thing to remember is that this is NOT the first time this has happened. This happens during every bull market cycle. Even though the price has dropped after circulating FUD news, or in the past when the bear markets began; the price has always recovered and even reached new highs.
I truly believe that if you sell now you will have deep regrets. Not only would most of us have to pay taxes on our profits up until this point, but also there is a very high chance that the price will go up further and then you will be forced to re-buy your bitcoin at a much higher price. And you probably won't be able to buy as much.
My key philosophy is to tune out all of the FUD news. Always stay focused on my core beliefs and what I think will happen. Every pay period always staking more bitcoin; through the good days and the bad as well. At the end of the year we will look back and wish that we had bought more bitcoin at the "cheap" price of $30,000. That goes for ethereum as well.
So I want to know if any of the FUD news has you worried? Have you been second-guessing your belief on where the price of bitcoin is going? And do you think the bull run will continue!?
As always, thank you for reading!
And just as I'm finishing up, it appears maybe the price of BTC is actually going back up.
This article explains a lot about the back door dealings that aim to manipulate the price of crypto currencies.