Suddenly, we are witnessing an almost free fall of the price down to $32K at the time of writing. Is this the end of Bitcoin’s magic bus ride for now, or is it a mere step backwards to regain momentum?
There are two facts and a speculation to be stated. First, it is more than obvious that this is not Bitcoin’s all time peak. The road is a long one and the race is more than a marathon to be ran. Bitcoin is just an infant in the history of money. It is 11 years old. Second, the crypto awareness is reaching a historical high, partly due to what Covid19 brought forward in terms of technological intrusion in every aspect of our lives, and partly due to the very essence of cryptocurrency’s pivotal point; decentralisation. The latter was proved to be a safe refuge amid financial disruption globally during 2020 where Covid19 and the already burdened financial systems across the world provided evidence that we need something more stable to maintain a substantial balance when crises hit. Bitcoin and Ethereum , among others, made their point timely.
Thus, it would be at least ungrateful to question BTC or even blame it for its recent fall. We must not forget that it was BTC which stood still and kicking all over 2020, despite the which is quintessential at that point.
In my opinion, BTC is behaving in the most natural -almost human-like- manner compared to every other currency existing. Let me explain. To draw an analogy from mountain climbing, I theorise that what BTC does since yesterday is what high altitude climbers do while attempting to reach the high peaks of Earth’s most beautiful yet most dangerous mountain peaks. It is acclimating. It is on its way to the highest top ever and it has to go back a few hundred feet every now and then, otherwise it will blow up from not being able to adapt to the different situational parameters of each different height level.
If it were for the opposite to be happening, that would be bad news. That would be neither natural nor logical. That would be a bubble alert. But it isn’t.
BTC is taking a small acclimating step before starting its journey to the next top of its long foreseen destiny.