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The last thirty days have without a doubt been difficult for Bitcoin and cryptocurrency. FUD was in the air with bearish signals from Elon Musk and various Chinese and U.S. regulators, followed by fake news about supposed FBI hacks. Bitcoin suffered the consequences as leveraged traders and panic sellers were driven out of the market in droves. At its trough, Bitcoin lost nearly 54% of its value relative to the all-time high of just below $65,000 U.S. Dollars and touched a four-month low price of $30,000 on the major cryptocurrency exchange Coinbase.
Regardless, the long-term outlook for Bitcoin and other cryptocurrencies remains positive. Institutions continue to invest in Bitcoin for their P&L statements and for their balance sheets. And a long-awaited new type of participant entered into the Bitcoin market with the recent announcement from El Salvador that Bitcoin is now legal tender in the country: governments. Bitcoin continues to outshine fiat as the world’s best and hardest form of money. It remains to be seen, but seems likely that governments will continue to make the jump into Bitcoin for their treasuries as representatives from other countries like Paraguay, Brazil, and Mexico have followed in El Salvador’s footsteps and broadcasted their support for Bitcoin.
Will the next thirty days lead to a resurgence in Bitcoin’s bull thesis or will the pending death cross be the final signal of a new Bitcoin bear market? Only time will tell.
The S&P 500 has posted small gains over the past thirty days, which perhaps lends evidence to the thought that markets as a whole, rather than just Bitcoin and cryptocurrency, are taking a breather after a year-long bull market. Regardless, even after Bitcoin’s mammoth price drop this past month, Bitcoin continues to significantly outperform the S&P 500 over the nine months since the ADCA experiment began.
Gold on the other hand continues to struggle. While it seemed to show strength early this month, that progress has tapered off and gold’s price performance over our nine month analysis period remains negative overall.
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Because this is not investment advice and everyone needs to do their own research before investing in any asset, I will not be sharing the ADCA formula that I’ve chosen to use. However, feel free to follow the progress of the ongoing ADCA vs. DCA experiment on my Instagram @assertive.crypto.dca or my Twitter @thehififinance.
