Yep, Bitcoin broke the $60,000 floor and headed downward. Much like the meme gif, everyone is riding the red candle downward with only their underwear left, and even that might disappear on the way down.
However, here's the reality; Bitcoin is more than twice as high than it was in 2023. And, yes, the inevitable grandfather of crypto coins is going to break $100,000 at some point soon, just not this year, maybe.
chart source: Yahoo Finance/CoinMarketCap
So, the coin is for all likelihood (and this is not financial advice), probably going to correct again and keep going upward. The big indicator that could easily push Bitcoin over the centennial mark is government. Whether it's the U.S. creating a reserve, or other countries realizing the value of Bitcoin for municipal interests, once the mega-whales of institutional money kick in, kiss any consumer reach into Bitcoin goodbye. The 99% will then be everyone who has a microscopic fraction of a single coin. Why?
Taking Monetary Policy Into Consideration
Collectively, government is not stupid, despite the common myth that it's a lumber system of blockheads. It knows where the financial powerbase sits, and the institutional strength of the central banks depend on being connected to the economies to move them with monetary policy. That only works to the extent that the base of the economy, value, is under control. For many decades, gold was that base. Then, after World War II, it became apparent gold was fallible and easily lost. So, something else was needed; that became fiat power. By the 1970s the separation from gold was complete when the U.S. dropped it for the ambiguous gross domestic product factor (GDP) backing fiat.
Value Doesn't Stay in a Vacuum for Long
Regardless of the political spouting during elections, governments around the world are now keenly interested and finding advantage in Bitcoin. Just recently Germany unloaded a king's ransom of BTC at the top of the recent market spike, and the U.S. Department of Justice wasn't far behind, scrambling to get a piece of the pie as well. The Mt. Gox release bumped up supply, not surprisingly reducing price as well, but the institutional powers are waiting for the dust settle, shake out a few more old-timers and swoop in to build reserves.
We are Witnessing History
I'm no sage of the blockchain, by any means. But I do know government well. I've seen it move, and the signs are already apparent. The anti-BTC, anti-crypto position is for show. If Bitcoin has value, government will have its hands on it through taxation, reserves, banking, exchange and more. The trick to position now is to plan for long-term institutionalization of electronic value. It fits well into modernization of economies, and the resistance will be gone within 20 years, mostly due to aging out and being the last of 20th century thinking about finance. I'll be an old man when that becomes complete, but it's been an interesting ride so far watching the digital economy mature to a reality. Bitcoin is just the flagship of that beginning.
