The Bitcoin market has just gone through 9 weekly red candles. Something extremely rare in the history of Bitcoin, which has just ended with a green weekly red candle. However, the trend is still largely gloomy, and some people seem to be getting tired of this current market phase, which is testing the nerves of less seasoned investors.
Probably also those of the more seasoned investors who still haven't figured out the why of Bitcoin, but that's another story.
Since its November 2021 high of $69K, the price of Bitcoin is down just over 55%. We can consider this a Bear Market, even though many indicators tell us otherwise.
Indicators such as the number of BTC outside the exchange platforms or the BTC reserves of Bitcoin miners. Bitcoin miners are more confident than ever in the king of digital currency. The Hash Rate of the Bitcoin network remains at its highest level ever, close to its recently reached ATH.
Billionaire investors like Bill Miller call Bitcoin an insurance policy against financial catastrophe. The reason is simple: Bitcoin is a unit of wealth that is not tied to central banks or governments.
When the current system explodes, Bitcoin will remain independent, even if from time to time the price of Bitcoin is more or less correlated with the S&P 500.
Nevertheless, the current market is painful for many investors. Many have already capitulated, or are about to do so. Wrongly in my opinion, because the bottom could already be in, and this painful market induces two positive things for people who believe in Bitcoin.
1. More time to deepen your knowledge about Bitcoin
Many investors have arrived in the Bitcoin world since the end of 2020. This means that these investors have arrived in the middle of a phenomenal Bull Market. In such a market, everything is simple, everyone is a genius. Moreover, novice investors tend to focus only on the price of Bitcoin.
This is something very time-consuming and becomes a trap as soon as the market turns around. For it is in the difficult times that your beliefs in Bitcoin will be tested. To pass the test and become a Bitcoiner, you must have taken the time to learn enough about Bitcoin to be convinced of this unique system that wants to offer all citizens of the world the same opportunities to break free from the yoke of governments and central bankers.
For those who haven't bothered to listen to the advice of Bitcoiners and learn more about Bitcoin in 2020 and 2021, this painful market will allow you to do so. Indeed, when the price of Bitcoin is stagnating, as it is around the $30K mark right now, the best thing to do is to put it aside and focus on the real signal: the Bitcoin revolution.
You'll find that this is much easier to do when the price of Bitcoin no longer becomes your main concern.
2. Opportunity to accumulate more BTC at discount
If a painful market is the best time to take the time to understand the why of Bitcoin, it is also a great time to accumulate more BTC at a discounted price. More and more people understand this, but very few put it into practice.
Want proof?
Look at the trading volumes with a Bitcoin price of $30K. Compare them with those observed when the price of Bitcoin was above $50K. You'll see that retail investors are waiting for the price of Bitcoin to take off before seizing the opportunity.
Your goal should be to take a long-term view and do something different. Acting differently here means acting smarter by taking advantage of the current Bitcoin price to accumulate more BTC at a discount. That's the feeling I have right now and that's the feeling of all Bitcoiners.
Of course, the prerequisite here is to have applied the first positive thing to do in a painful market like the one we have been experiencing with Bitcoin since the beginning of the year.
Final Thoughts
In the markets, it is always in the most painful moments that the best opportunities are found. The trick is to have the foresight to take advantage of them. For that, there is no miracle: you have to understand that Bitcoin is not there to make you rich, but rather to prevent you from becoming poor in the event of a financial catastrophe in the current monetary and financial system.
This is how Bill Miller sees Bitcoin: as the best insurance policy against the flaws of the current system. I urge you to adopt the same vision. Then you'll know what to do in a painful market and you'll feel much more at ease.
Just like all Bitcoiners today.
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