Instead, take advantage of the opportunities the market offers.
The price of Bitcoin is $44.1K at the time of writing. For those who were already in the market this time last year, the current price is still exceptional. There is no reason to panic. The price of Bitcoin is up +355% year over year. There are worse one-year performances.
Yet some can't help but see the situation the other way around.
The price of Bitcoin was nearly $65K in mid-April 2021 when Coinbase did its IPO. The current price, therefore, represents a correction of -32% in just one month:
The crypto industry is in chaos, but Bitcoin is still in a Bull Market
The cryptocurrency industry is in chaos right now. A tweet from Elon Musk on May 13, 2021, in which he explained that Tesla was dropping Bitcoin payments for its cars due to concerns about Bitcoin's environmental impact set the world on fire.
Several FUD rumors then reinforced this feeling. The multiple controversies that Elon Musk had fun creating on Twitter on May 16, 2021, only reinforced the fear of investors.
The price of Bitcoin could only plunge in such a situation.
For some, this would be the beginning of a Bear Market. We are still waiting for CNN to publish an article declaring the beginning of the Bear Market of Bitcoin to panic. As a reminder, CNN published such a clickbait article in January 2021.
Three months later, the price of Bitcoin reached a new All-Time High of $64.8K. So you have to be careful in such a situation.
The price of Bitcoin crashes from time to time which is normal with a free market like Bitcoin
In fact, you shouldn't be surprised to see the price of Bitcoin crash from time to time. Bitcoin has always worked this way since its inception. The volatility of the Bitcoin price is not a myth, it is a reality that all investors entering this world need to embrace.
Bitcoin is the only truly free market in the world.
This means that Bitcoin users can decide the equilibrium price of Bitcoin at any time. There is no circuit-breaker in the Bitcoin world like there is on Wall Street. If Bitcoin falls sharply, only investors who believe in its revolution will be able to save it. Fortunately, the Bitcoin HODLers of last resort have always answered the call. And they will continue to do so.
If Bitcoin soars, nothing can stop it either.
For investors new to Bitcoin world, this may seem surprising. But this is how a truly free market works.
Elon Musk's criticisms don't change the fundamentals of Bitcoin
It means that investors making decisions with their emotions rather than their logical reasoning can cause larger swings in the price of Bitcoin. This is what we are seeing now. Everyone is afraid of a Bear Market because Elon Musk is criticizing Bitcoin in an unfounded way.
To tell the truth, Bitcoin did not change between January 2021 and May 2021. Elon Musk has. Elon Musk has purely business reasons for changing his position and now attacking Bitcoin. He wants Tesla to be able to get the subsidies from Joe Biden's infrastructure plan.
Under these circumstances, Bitcoin should be left out of the equation for Tesla.
For Elon Musk, Bitcoin has never been anything more than a business opportunity. He is not a Bitcoiner and never has been. That is his right. As an investor in Bitcoin, you must learn that no one is more important than another in the Bitcoin world. Bitcoin is the people's currency backed by the people. Bitcoin does not need Elon Musk to succeed in its revolution.
The Bitcoin revolution will continue without him.
This is the tenth time since 2017 that Bitcoin has crashed by -30% in a month, yet its price is up 50x over the period
Bitcoin's fundamentals keep getting stronger block by block. The $100K mark is still a more than credible goal by the end of the year. To reassure you one last time, you should keep in mind that the current crash is the tenth of at least 30% over a month for Bitcoin since the beginning of 2017 :
January 2017: -35%
March 2017: -33%
May 2017: -32%
July 2017: -40%
September 2017: -41%
November 2017: -30%
December 2017: -21% then -23%
December 2018: -84%
January 2021: -31%
May 2021: -32%
Despite these brutal Bitcoin crashes, the price of Bitcoin is up nearly 50x over the same period. This is how a free market works. You can see that during the Bull Market of 2017, these types of crashes of at least -30% were numerous. There is no reason why it can't be the same this year in 2021.
Rather than panic unnecessarily, you'd better take a step back and think about the incredible prospects for Bitcoin in the months to come.
Final Thoughts
The current crash is an incredible opportunity to accumulate more Bitcoin as more and more institutional investors enter the market in the future. If you can't handle the mechanics of a free market like Bitcoin, then you should stay away from it.
You will be left with the stock market which is a highly manipulated market by the authorities but also by the Fed which drives the trend through its monetary policy. If you don't have adequate emotional control to take full advantage of Bitcoin, at least have the wisdom to recognize that.
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I feel better after reading that. This article was therapy.
I think Marylin Moonroe put it best when she said, "If you can't handle me during my dip, then you don't deserve me at my moonshot."