For what seems like forever, bitcoin has been trading within the same price range. If you were to look back on this point last year, bitcoin was at nearly the same price. While it did have its high moments of reaching $64k during the first half of last year and then climbing back up to 69k during November of last year. Most would agree that bitcoin's rise to eventually reach those price targets that were predicted was delayed by the constant onslaught of FUD and world events that took place last year.
We had the sell-out of Bitcoin from Tesla and then ESG FUD thrown against BTC. Then China banned bitcoin and there was a huge exodus of mining from the region. After that, a new strain of Covid appeared, and it was much more contagious than any of the previous strains before it. It shook the financial markets. Along with that came the panic of inflation and also fear of rising interest rates. And if that wasn't enough, the whole Russia-Ukraine situation began as well. Again putting fear in the markets, and also that a potential worldwide war might take place.
When taking all of those things into consideration, I would argue that we are incredibly lucky to be at the same price levels that we were at this time last year. And this should make you bullish. Indeed, dips may not be finished, as the markets are very fragile at the moment. But, I have started this 100 times and will continue to do so. Early in the lifecycle of bitcoin, these types of events would have destroyed bitcoin, potentially to a point that it wouldn't be able to recover from. Bitcoin is showing real strength here. First of all, just by surviving. But then, each time it sees these large price drops, it doesn't want to quit. After getting knocked down, it continues time after time, to get back up. And prices recover. The only issue is that the last year has been so crazy, that each time it has recovered, something else happens in the world that sends panic throughout the markets.
Things will calm down. While as bad as the world situations have been, and the pain it has caused for so many people. As for bitcoin, it has been very beneficial. Bitcoin's real use case has been spread and learned more so than ever before. Bitcoin has next to no inflation, and it will eventually go to 0%. Being the most decentralized money on earth that isn't controlled by any one entity. Being permissionless, meaning that you don't need anything party companies to approve transactions, or governments to allow them. You can't be sanctioned by governments. Your assets cannot be frozen. Your life savings cannot be inflated away. The news has been spread, and at least 10 years' worth of free marketing has been done for bitcoin, in a matter of just a few months. You just need to take self-custody of your coins.
So yes, bitcoin will recover. It will soar to new incredible heights, that we can't even imagine yet. If you have accumulated a decent position in bitcoin and can HODL it, you will have set yourself up very well for the future.
But because there is a lull in the market. That is a great time for self-reflection and researching the market as a whole. After all, you don't want to be FOMOing in as prices are increasing rapidly. You want to put in the work during the quiet times, that will change those bullish market days, into life-changing days.
So what am I doing during these quiet times in the market?
Well, the first thing is something that I'm always doing and that is constantly accumulating. It sounds basic and easy, but you will quickly find out that continuing to accumulate even while prices keep dropping, takes a certain kind of mental toughness. But if you're able to do it, you will be able to build a great portfolio.
The next thing that I'm doing much more of lately is taking self-custody of my coins. While I continue to lend out a decent amount of bitcoin and Ethereum; I have come to grips with that the lending market has lost my confidence for the time being. Especially being an American citizen, where many of the lending services have blocked us from adding more funds to our interest accounts. Until that situation is settled, and there is some peace in the world, I decided that I felt safer holding my coins. Especially taking into account how many of the services continue to lower their reward rates.
The third thing is that I'm getting hands-on experience with Ethereum's layer 2 and side chains. The same goes for bitcoin as well. I believe strongly that both bitcoin and Ethereum are the future of cryptocurrency, but not everything will be built on their base chains. They will both be scaled and have extra abilities added via layers built on top of them, and by side chains. These will be the next big things in my opinion and if you're able to get in early, could make you a lot of money. Not financial advice.
And finally, I'm using this time to refresh myself. I love the bitcoin and cryptocurrency markets, and it is probably the largest passion I have. But with that said, it can be an extremely stressful market. By avoiding trading and collateral, I'm able to invest stress-free. It also means that since my time horizon is for several years; today's price action has no importance to me. Once you get to that point in your bitcoin journey, it makes everything much easier.
No one knows the future, especially in the type of world that we are living in currently. But it is a pretty safe bet that someday, probably sooner than many of you think, bitcoin will reach a new all-time high. With that knowledge, use this time wisely and take advantage of the price lulls and dips. Do everything you can to accumulate more. But also, use this time to research the market. Increase your skills as well. Knowledge is the power that will set you free.
How about you? How are you taking advantage of these periods of quiet price actions?
As always, thank you for reading!
