These last two months have been a difficult time to be in the cryptocurrency markets. Nearly all coins, including bitcoin and ethereum have dropped 50% in price from where they were in April. For new people entering the market, this has caused quite the panic causing them to declare the bull market finished, selling out of the market at a loss and vowing never to return to bitcoin again. But they are wrong. While this market has been quite unpredictable, and because of that no one actually knows what will happen. If you actually look into the events that have been taking place the last few months, you will quickly come to the conclusion that things are just getting started. Here's why.
Yes, even for me, the most bullish of bitcoin people, the last few months have been quite exhausting. Constant up and down in price; but that isn't the exhausting part for me. Just when bitcoin seems to be finally recovering in price and poised to be making a huge move upwards; at that price moment there has been a constant release of bitcoin FUD stories. It was Tether FUD, Elon Musk FUD, Mining Energy FUD, China banning bitcoin FUD, Tax FUD, Hashrate drop FUD, IMF FUD and the list goes on and on. To a regular person I can understand why these stories would be quite alarming and cause them to want to sell their coins. After all, if you were to read or watch the mainstream news; they would have you believe that bitcoin is the poison that will destroy the earth and the price will definitely go to zero. How could a sane person want to invest in that? But, that is what they want you to think.
As with all types of investments, doing your own research is incredibly vital. I would argue that is even more important with bitcoin. Once you have down your hundreds of hours of bitcoin research and truly, actually understand what bitcoin is. That is when you will have acquired a superpower. No, you will not be able to fly up into the sky or shoot lasers from your eyes like superman. But, you will have all the skills and knowledge necessary in order to be successful in this market. The most important of these skills is being able to see straight through the FUD articles that have been releasing so often as of late. Because you know every detail of bitcoin, you will quickly be able to realize which information is true, which is false, and why they are delivering that news in the first place. The interesting things about going down the bitcoin rabbit hole is that you begin to see the world for how it really is. That each group, organization or country has their own motivation. For example, why would Senator Warren from the USA all-of-a sudden come out attacking bitcoin for it's energy usage? While perhaps she is concerned about the environment, although she has been guilty of harming it even more by using her own private jet. The real story could be that some of her largest campaign donations have come from some of the largest banks. Banks that have a lot to lose if bitcoin is to take over. Why is China constantly releasing FUD stories about bitcoin potentially being banned in the country? Could it be that they are actually intimidated by the coin, and the freedom that it could give their own citizens. These are all things that must be considered.
As I mentioned above, up until this point we have had an enormous amount of FUD and obstacles that Bitcoin has had to try to overcome this year. With that being the case, bitcoin is still currently at a price of around $32,300, quite an amazing feat I would say. In past years when bitcoin wasn't as strong as it is today, it might have meant the end of the bitcoin cycle. Even worse, it could have threatened the coin as a whole. There is quite a lot to be bullish about.
The first of those being the El Salvador situation. It is still incredible to think about; the fact that a country has made Bitcoin their legal tender. While this officially won't come into law for another month or two. It will be a huge test for the network and show the world the opportunities and rewards that bitcoin can offer to a country that adopts it. There have been rumors of other countries adopting bitcoin as a legal tender as well. Countries such as Paraguay, Panama, Brazil and more. El Salvador is the first chain in a long line of dominoes, and there will be others that will soon come. Not even the most bullish of us expected countries to begin getting into bitcoin this early. Between covid taking place now El Salvador adopting bitcoin; the adoption timeline has been sped up at least ten years in my opinion. When other countries begin to adopt, the supply of BTC will begin to evaporate quickly. There isn't much time left to acquire bitcoin cheaply.
The next reason to be bullish is the forever-rumored Bitcoin ETF in the United States. Yes there are other Bitcoin ETF's around the world, but a very large amount of the world's economic activity happens in the USA and that is why this is incredibly important. In the past there have been a few bitcoin ETF applications here and there; each of them being rejected. But we have never seen anything like we are seeing today. The biggest financial names in the world have been applying for the fabled ETF. Names like Goldman Sachs, Fidelity and the list goes on. In fact, we have never seen so many applications pending at one time. While it is very easy for the SEC to turn down a few applications at a time, especially by smaller players. It becomes harder when the applications are submitted by the biggest players are applying, and in big numbers. The companies that control the world. That is why I feel very confident that we will soon finally see a bitcoin ETF in the USA accepted and this will send the price of Bitcoin upwards quickly.
Finally, I have one more thing that has me incredibly bullish and I promise this one will surprise you. Especially with this article focusing mostly on bitcoin. It has something to do with Ethereum. At the beginning of August Ethereum will be implementing EIP 1559, which will burn ethereum with every transaction. This will supposedly make ethereum a depreciating chain and the supply will begin to dry up. But what does this have to do with bitcoin? There are two things that this will do for bitcoin. The first is that this will affect the mood of the market. Like it or not, but a lot of the price swings in cryptocurrency have to do with the mood of the market in general. Right now the market is in a mood of panic and the price has been dropping consistently. Once this EIP takes place, I think it will be a nice jumpstart to the industry and mood of the market. It will make people excited to come back into the market. Excited to invest into cryptocurrency again. This is more important than you can imagine. The second thing is that this will cause the price of ethereum to rise. While generally BTC is the king that controls all price fluctuations in the market. There have been a few times where ethereum made the first move, and helped to give BTC a nudge that woke it up, causing BTC to finally take over and go parabolic. I think there is a great chance of this happening this time as well. It is definitely something to watch for.
As for me, I do not think this bull run is finished. I remain more bullish than I have ever been. Maybe you're wondering what my personal price predictions are for the end of the year. Like I said before; this bull run has been unlike any that we have seen before it. It appears to be a much longer cycle that could require more time to play out. With that being said, I'm seeing a price of over $150k by the end of the year at the low end of things. With my expectations being that will will exceed that by quite a bit.
How about you? How are you feeling about this bull market? Is it finished, or just taking a short break? What are you price predictions for bitcoin?
As always, thank you for reading!
Bitcoin has always dominated the crypto market. I expect more moves in the coming weeks, it's enough motivation to keep accumulating more BTC on a secured wallet like https://atomicwallet.io/ where users have exclusive access to their private keys.