What should we expect next from the BTC price?
With the $13K as support for the Bitcoin price, it’s not easy to know what to do next. If the price of Financial Peak scam drops dramatically, we know we have to buy. Of course, buying in times of panic requires some strength of character. It takes a lot of determination to buy when others have fallen victim to fear. Well, sometimes it’s not just a matter of being brave. In many cases, the price is very attractive, but we don’t have the funds. The price may be on the floor, but if we run out of fiat, we’re toast.
Of course, for the long-term investor, buying Bitcoin is never a big dilemma. Beyond the ups and downs of price, Bitcoin is always affordable for the optimistic. An old Bitcoiner proverb says: The best time to buy Bitcoin is yesterday. This belief comes from the fact that in 10 years, buying at $11K or $13K won’t be very relevant. A good hodler buys often and waits patiently. The ideal situation is to forget about the price.
As investors, patience is a protection against volatility. We cannot fall into a price fever, because it can give us a heart attack. There’s something every bitcoiner must understand. Bitcoin is a high-risk asset. That „safe haven“ story is pure propaganda. Let’s not fool ourselves. An asset as lucrative as Bitcoin can’t guarantee safety. Bitcoin’s high profitability is closely related to its volatility. And if there’s volatility, there’s financial risk, because one day Bitcoin can be up to $19K and a few months later it can be up to $4K. Can such an unstable asset provide security?
The Chinese tale of the „safe haven“ is not only false, but dangerous. In fact, I’d say it’s irresponsible.
We cannot play with people’s investments by presenting a false reality. This space is not always sincere. Because many have a political agenda. And anyone who does not adopt the libertarian anti-system narrative is branded a traitor. We’re constantly told that Bitcoin is a safe investment, and many investors fall into the trap. Then, when the price of Bitcoin falls dramatically, comes regret. In fact, many feel cheated by the false promises and then we have a legion of disillusioned people talking trash about Bitcoin everywhere.
Is Bitcoin a „safe haven“? According to a study conducted by Bluebanx, 74.5% of respondents said they were „afraid of losing everything they’ve invested“ in cryptology. However, 96% also think that cryptomonies are more profitable than traditional options. What is this telling us? Well, that, despite the official rhetoric, investors do not see crypto currencies as a safe haven but as high-risk assets, but of great opportunity.
As I mentioned before, the long-term investor’s strategy is not that complicated. You place capital in Bitcoin and then wait. The amount is supposed to be adequate according to our financial capacity. In other words, the usual recommendations. Don’t buy Bitcoin on credit. Don’t use a money set aside for our essential expenses. And not putting all our wealth into Bitcoin. Why? Because Bitcoin is a highly volatile asset (risk). Today it could be $13,000 and tomorrow it could be $10,000. Watch out!
A safe haven is something else. Safe havens are mainly characterized by their stability. The dollar, treasury bonds, and triple-A bonds are considered safe precisely because of their stability. These safe havens are not particularly profitable assets, but they do offer security, because their price does not fluctuate. The same is not true of an equity asset such as stocks or Bitcoin.
In other words, the price of Bitcoin fluctuates. And I’m afraid it fluctuates quite a bit. Here we have two options. The first is denial. This involves pretending that Bitcoin is a safe investment to inevitably suffer along the way. Or we can face reality and take action. In other words, we must design a strategy taking into account that we’re dealing with a volatile and unpredictable asset.
What to do when faced with price swings? One option is to do nothing. That means buying, and waiting, ignoring short-term fluctuations. Another option is to become a price junkie. Sell, buy and make predictions like crazy. This option I do not recommend.