When BTC rallied from its previous ATH from 2017 up to a staggering $42,000 per coin in less than a month you could cut the mass euphoria with a knife on social media. Typical human greed and typical retail investors attitude, as these ones don't seem to ever have a plan, stay grounded in reality and be fundamentally prepared for a bull market.
Bull markets can usually make one a lot of money from crypto, like literally tons of money, but you can also loose a lot if you're a pleb and quite a few ones have sold cheap BTC to fatty assess whales in this recent dump in BTC through a cascade of selling orders triggered at demand. What if I tell you it's all planned and it's natural to happen that way?
You can see that by the time BTC peaked at $42,000 and started to fall triggering the sell orders cascade the number of BTC whales started to rise which means that probably BTC whales are actually accumulating cheap BTC from retail. PROBABLY... What do you mean cheap? Well, if BTC will reach six figures or more in the years to come, buying at close to $30,000 is cheap, right...
The number of BTC whales(whale=entity that holds more than 1000 BTC) has hit a record high of 2,140 right on Monday when the BTC sell off occurred. Coincidence, right? I said above that I consider this correction to be natural and looking at the 2017 bull market BTC has had seven corrections ranging from 20% to 40% in depth and after each of them it appreciated in price from 50% to 250%. Why this time would be different and unnatural...?
$40k to $30k is around 20% so we're not even near to the magnitude of corrections BTC has gone through in 2017. The only difference this time is that institutional FOMO is what boosts BTC's price and these guys have heavy artillery at hand to play with the market. Seeing this sharks involved, as @edicted likes to call them, makes me say that we're actually witnessing a massive wealth distribution taking place right now with BTC. Add a depreciating dollar to that and you should be a fool to sell your BTC now, if you own any...
Well some might manage to catch it cheaper at around $20,000 if it dips that low, but some will really see their BTC gone forever, stored by some trusted fund and valued at hundreds of thousands if not millions in the year to come. Some like Stefan Thomas, Former Ripple CTO, Cannot Access His Bitcoin Wallet That Is Now Worth $231 Million and that kind of sucks... for him. Read that if you had a bad day...
If you don't have the patience to do so I'll briefly mention that he doesn't remember his password to his hardware wallet and has two shots left to have access to his 7,002 bitcoins that he earned many years ago by simply making some tutorials about Bitcoin. Easy come, easy go, right? Well, I feel sorry for the guy, but lets move on and learn from someone else's mistakes, in this case the former CTO of Ripple, as those ones seem to be more valuable for us and easier to digest.
A bad day today is for World’s Biggest Darknet Market Using Bitcoin and Monero as well as it has been caught guard off by Interpol. With nearly 4,650 Bitcoin and 12,800 Monero in processed transactions the dark net market has managed to process €140 million worth of transactions between 500,000 users including 2,400 vendors, activities involving mostly drug dealers and consumers.
“The investigation, which was led by the cybercrime unit of the Koblenz Public Prosecutor’s Office, allowed officers to locate and close the marketplace, switch off the servers and seize the criminal infrastructure, more than 20 servers in Moldova and Ukraine supported by the German Federal Criminal Police Office (BKA). The stored data will give investigators new leads to further investigate moderators, sellers and buyers.”
As you can see, Bitcoin is gradually transforming itself and other cryptos from untamed beasts and cypher phunks and drug dealers money to clear transparent and clean assets which will mostly be held by banks and financial institutions in quite the near future. If you don't believe that's gonna be true, stick around for ten more years and tell me who's owning more than 90% of the BTC in circulation by then. Excluding forever lost coins...
Bitcoin started as the currency of the people and is gradually becoming the asset of the rich. How much of a currency role will it play in the future is a bit of uncertain for me, but I can clearly observe that it's gradually changing hands. From the poor to the rich, and will keep on doing that with every halving ahead. Don't know much about trading, but I do know that if you don't do it good you might loose valuable cryptos on the way. Yes, you might buy more of them cheaper if ridding the waves with skills, but if not... bye bye bitcoin forever.
Hope no one around here is selling cheap BTC to financial institutions during this correction and that you're healthy, alive and well after the dump, and ready to ride the bull this year. We've just got our first stop now and we might have more of those on the way up, but when you'll look back from the peak at this January so called crash you'll realize it's just a bump in the road.
Thanks for attention,
Initially Posted Using LeoFinance Beta