This week, Bitcoin’s price dropped all the way down below $90,000, and it sent the cryptocurrency market into a panic. Leaving many wondering if we just witnessed the end of the bull market, and leaving others debating about whether it even arrived in the first place.
There is nothing new about seeing Bitcoin’s price drop dramatically. The longer you are invested in this market, the more you begin to embrace its extreme volatility. Price drops during times of panic, March 2020 during COVID fears, and fall 2022 when FTX was collapsing, ended up being life-changing investing opportunities for Bitcoin.
However, for some reason, this feels different. This was the cycle when all of the cards were lined up for Bitcoin to move spectacularly. Wall Street and Banks had finally entered the market. The US President had given his full support to Bitcoin, even going so far as to create the US Strategic Bitcoin Reserve, and corporations have been rapidly putting Bitcoin on their balance sheet. With governments and powerful companies such as BlackRock now becoming allies to Bitcoin, rather than trying to destroy it, everyone was beginning to dream about just how high Bitcoin’s price could go.
Price predictions of BTC going to $500k had begun to be considered conservative, and many were predicting a price of over $1 million, and that was just the beginning. The truth is that all of those predictions could end up becoming real. Bitcoin has always seemed to have a mind of its own, thriving on being a contrarian. Just when you think you know exactly what will happen next. That is when the rug is pulled out from beneath Bitcoin’s feet, or also the moment when it begins to pump unexpectedly.
With that said, there are some real reasons to be concerned this time around.
In all of Bitcoin’s history, when its price has dropped below its 50-week average during the bull market, that has always been an absolute signal that we have officially moved into the bear market. Up until this point, that has always been the case. Unfortunately, Bitcoin did move below that average this week, causing many analysts to declare that Bitcoin has entered the bear market.
If that bearish development wasn’t enough, Bitcoin is still having to deal with extreme macro factors that have shaken the financial sector.
The US deciding to essentially start tariff wars with endless countries around the world has really held back what this bull market could have become. The harsh reality is that people around the world are still struggling with inflation and just being able to make ends meet each month, let alone having the extra money to be able to invest in a risky asset like Bitcoin or crypto.
However, many in crypto would argue that the bull market never came at all. If you’ve bought coins other than Bitcoin, it’s likely that you are still deep in losses. In fact, 99% of projects never even made new all-time highs. That includes some of the biggest names, such as Ethereum, Cardano, Polkadot, and the list goes on forever. Altcoin season never happened.
Going further down the road of bearishness. Many experts are expecting that we are on the verge of some kind of Black Swan event that is about to send prices tumbling sharply. They have been recommending that you brace yourself and have some cash ready to take advantage of lower prices. This has left many wondering just how low could Bitcoin price could go.
While all of that may sound extremely bearish, I remain bullish.
In the short term, anything could happen. That is always the case with Bitcoin and crypto. Yet you need to remember that the US is on the verge of turning back on the money printer in a major way. And are also potentially planning on giving out stimulus checks of $2,000 to each paying tax member. The last time this happened during the COVID days, the market went into a bullish frenzy. Also, with the concern about Bitcoin dropping below the 50-week moving average.
Remember that Bitcoin is making a lot of firsts in its young history. During the last bull cycle, Bitcoin dropped below the previous cycle’s all-time high for the first time. Something that Bitcoiners had thought to be impossible. Bitcoin could fool everyone by dropping below the 50-week average, and then returning to the bull market.
Sometimes things take a while to behave how they should. There is no denying that this is the most bullish time period we have ever had for Bitcoin. The short term could have a bumpy road, but you can’t keep an inflated balloon underwater forever. At some point, Bitcoin will begin to soar upwards. When that happens, large amounts of capital will also flow into altcoins as well.
My belief is that we haven’t entered the bear market quite yet, but have just hit a large bump in the middle of the bull cycle. Prices will recover, and we will look back at this moment and wonder why we were in such a panic.
How about you? Do you think the bull market is over?
If you want to show your support for my writing, please sign up for my FREE Substack newsletter. If you upgrade to a paid subscription, that would mean a lot.
As always, thank you for reading!
