The more things change, the more they stay the same. As time passes, we are learning how directly this relates to the cryptocurrency market. We all love to say that this time is different. Saying there won’t be another extended bear market where prices collapse and it seems like the entire world turns against this market. But it always happens, and for the foreseeable future will continue to happen.
However, this isn’t a bad thing. If you know how crypto cycles work, and that they are set on a cycle of simply wash, rinse, and repeat. You can use it to your advantage. The cryptocurrency market still presents perhaps the greatest opportunity to change your life financially. You just need to have the patience, conviction, and most of all; experience and knowledge to make it happen.
What goes up, must come down. And what goes down, must come up.
Throughout the last handful of years in the cryptocurrency cycles there have been two dangerously bullish times that should have made you worried. The first was all the way back toward the end of 2017. The hype surrounding Bitcoin was everywhere, and a large number of people were learning about it for the first time. Trying to get rich quickly, people were rushing into Bitcoin. People had gotten so used to the price going up 10 to 15% on a daily basis, that they were expecting its price to rise all the way up to $50k. That should have been your warning to expect that the price would soon be crashing.
The second most recent bullish time that should have made you cautious was in the fall of 2021. Bitcoin had just recovered after a difficult summer, and the futures BTC ETF had been approved in the US. Laser eyes were everywhere, and people were declaring that Bitcoin would rise up to $100k, and that would be only the beginning. However, the launch day of that ETF would end up being the top of the cycle, and Bitcoin wouldn’t come anywhere close to those price predictions. Topping out at $69k.
“Where people are greedy, you should be fearful.”
That is part of the famous Warren Buffet quote. However, the other half of that quote is equally important to your success.
“Be greedy, when others are fearful.”
Just as there were overly bullish times that should have made you very cautious. There were also extremely bearish times that ended up being life-changing opportunities.
After the blow-off-the-top moment in 2018, prices continued to drop until 2019 when they reached their bottom. Bitcoin went down to $3k, and Ethereum down to $80. Most would agree that buying at those price levels could change your life significantly.
With that said, as Bitcoin and crypto does so often; it stood back up and marched even stronger. But as we entered 2020, Covid fear rampaged the world and this sent prices down once again. Bitcoin and Ethereum would soon drop back down to those once-in-a-lifetime buying ranges of $3.5k and $80 respectively. People who bought during these fearful times were able to change the trajectory of their portfolios forever.
Prices have risen quite a bit since then, but it doesn’t mean that these incredible buying opportunities aren’t around.
They still are.
During the most recent bear market, both Bitcoin and Ethereum dropped by over 75%. Other cryptocurrencies such as Solana dropped by over 90%. While there is no guarantee that crypto will rise up to previous price levels. But, if you have any conviction at all in this market, then these prices were once again incredible buying opportunities.
To be successful in this market, all you need to do is chill and zoom out. By having a long-term approach, the price crashes here and there won’t affect you as much. Instead, you will begin to view them as incredible opportunities. The longer that you are in this market, the more that you will begin to notice that the history and cycle in crypto often tend to rhyme very closely. And you can use that knowledge to your advantage.
How about you? How do you take advantage of repeating crypto cycles?
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As always, thank you for reading!
