After witnessing the agonising crabbing of Bitcoin at around $15-16k for the longest time, its pump to $22-23k came as a pleasant surprise to many.

Some people didn’t appear all that astonished, if general market sentiment on crypto forums is anything to go by. They opined that if FTX hadn’t crashed so spectacularly, Bitcoin would have been crabbing around $22-23k some time ago anyway. So this pump was to be expected.

Other users who were similarly unperturbed by Bitcoin’s pump went as far to declare the pump as a bull trap. They believed that too many short sellers got obliterated, thus leading the market to be over-shorted at $16-17k, with a squeeze as the outcome. They postulated that Bitcoin would fall in price very soon.

Investors who believed in the bull trap theory also highlighted that investors ought to be mindful of the FED’s report that would be released on February 1st. Interest rate is expected to be raised again - perhaps 25 basis points. This report would likely bring about a cooling down effect on Bitcoin’s price.

Indisputably, seasoned Bitcoiners would say that the least interesting thing about Bitcoin is its price movement. Many of them have ignored the noise in the market as they commit to executing their DCA, having a razor-sharp focus on accumulating as much sats as possible. While sticking to your game plan is important, I think that being cognisant of the market sentiment could sharpen your acumen. For instance, being psychologically prepared for a dump after $22-23k could incentivise you to beef up your war chest, which you could deploy in the event that the dip happens.