Wow, Bitcoin didn’t simply break its earlier all-time excessive of $160. However it went properly above it. Practically $1k per Bitcoin!
Regardless of the 50% dip after that preliminary run up, costs nonetheless continued far past anybody’s wildest expectations. However it occurred solely after a severe 50% dip.
Because it stands, we’re at the moment 50% down from the earlier all-time excessive. Summer season months have traditionally been dangerous for the worth of Bitcoin and cryptocurrency as a complete.
Bitcoin’s value received slaughtered going into summer time each in 2013 and this yr. And each occasions, it was roughly a yr after the halving.
However, if historical past repeats itself, there’s a very sturdy risk that we see an enormous run up in the direction of the top of the yr.
Not solely would this counsel the stock-to-flow mannequin is appropriate, which predicts $288k Bitcoin on this bull run, however it will additionally comply with the same timeframe to the 2013 cycle.
However there’s another piece of proof that makes me suppose this could possibly be the case.
We will use Google Traits to see roughly how many individuals are looking Bitcoin at any given time.
Everybody’s huge worry proper now’s that this bull run is a repeat of the 2017/2018 cycle. The place each cryptocurrency noticed ~90% drop in value adopted by 3 years of stagnant costs.
But when we have a look at Google search quantity for Bitcoin, we’ll see that it fell off a cliff in early 2018. And it stayed low for a very long time.
Now, we will evaluate the search quantity to the way it seems to be proper now. Discover that there’s a vital dip. However it’s nonetheless holding sturdy. There may be nonetheless curiosity in Bitcoin child!
Which means individuals are nonetheless looking Bitcoin. There are nonetheless new folks studying about it, shopping for it, and storing it.
And all these new folks step by step enhance the worth. And will set off one other run-up later this yr. Just like what occurred in 2013.
On the finish of the day, none of us can predict what Bitcoin will do. We’d all be wealthy if we might.
However we will research the information and make an informed guess on what will occur. There’s fairly a bit of knowledge that makes me suppose Bitcoin will break a brand new all-time-high later this yr. Perhaps even in 2022.
However on the finish of the day, nothing is assured.
Bitcoin might get hacked. And the worth goes to 0. Joe Biden might criminalize Bitcoin and crash the market. No one is aware of what’s going to occur.
Personally, I’m treating this summer time as time to be dollar-cost-averaging into cryptocurrencies as the costs proceed to drop.
The neighborhood will get greater each day. And even when Bitcoin doesn’t see one other run up on the finish of the yr, it’s only 2024 that Bitcoin has one other halving occasion.