In the investing world, there are busy times, and also slow times in the market. One of the slowest times has always been considered to begin in May, and last throughout the summer. Perhaps you have heard the famous phrase, “Sell in May and go away.” The thought is that investors and people, in general, like to go outside, take trips, and be more active when the weather is nicer. This causes financial markets to suffer during this time. Perhaps there is no greater example of this than Bitcoin.
During the last two years, Bitcoin’s price nearly peaked for the year during May and then saw prices crashing down. In 2021, Elon Musk started FUDing mining and Tesla sold off some Bitcoin. Soon after China banned it. The end result of several months of Bitcoin’s price moving downwards and sideways. The market became so boring that if the loss of your portfolio’s value didn’t drive you away from the market, the lack of price movement did.
We would also see Bitcoin’s price peak once again around May 2022. But soon after the UST/Terra Luna de-pegging event happened. This would cause a cascade of insolvencies that would nearly cause the crypto-lending sector to become extinct. After the extreme price drops, we once again saw several months of sideways price action. If you were lucky enough to survive the insolvencies with your funds intact, the boredom of the market might have driven you away once again.
Now fast-forwarding to present day 2023, we are once again approaching May. After the banking collapse and enthusiasm behind Ethereum’s latest protocol update, Bitcoin’s price rose to nearly $32k. But then the government came out attacking, the dollar became stronger, and a variety of other factors caused the price to start moving down.
But the question still remains. Is this the start of another summer of boredom, where nothing happens? Or, will this time be different?
I would be lying to you if I said I knew the exact answer. No one does. However, this time does feel different in my opinion. However, you may feel about Balaji’s bet of Bitcoin reaching a price of one million dollars within the next 90 days. The important part is that he seems to be trying to ring the alarm bells similar to what Paul Revere did during the American Revolution against the British. The government seems to be in a state of panic, and is coming out very defensive because of that. The printing could soon be coming. If that happens, your only raft to safety could be Bitcoin.
But even if that doesn’t happen. Historically, these “boring days” in the Bitcoin market have been some of the best opportunities to accumulate. You don’t want to FOMO into the market while prices are soaring. Instead, the best times to buy are on deep red days, or when the market is doing absolutely nothing.
As for me, I view this as a great opportunity to keep accumulating. I have reached Bitcoin Zen. If prices soar, I’m happy to see the value of my portfolio increase. If prices drop, I’m excited to accumulate even more. My conviction has never been stronger. Those who maintain conviction during the darkest days, and survive the market will be rewarded in the long term.
How about you? Are you prepared for the boredom of summer Bitcoin markets?
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