If you have been paying attention to the Bitcoin market, there is one thing that is absolutely clear. Something monumental is about to take place. The feeling is everywhere, and you cannot escape it. It is palpable and growing stronger by the day.
Over the weekend, Bitcoin rose to a new all-time high of $125k. That fact alone may seem very exciting. However, the truly interesting factor in this was that there wasn’t a real catalyst for this move. It was a natural price movement. Natural supply and demand, with the price moving up, causing shorts to be liquidated.
The hard truth is that Bitcoin is now entering uncharted territory. No one knows what will happen from here on out. It was at this exact time of the year in 2021 that Bitcoin finally rose up from many months of price drops to make one more all-time high before sending us into a lengthy bear market. A time that was a result of all the fraud and bankruptcies that were ravaging the crypto market at the time. However, even with all of those things taking place, that cycle was a fake-out.
Most people would agree that the real bull market came to an end in the spring of $64k, before the price eventually collapsed with one fake-out pump in the fall, before we were sent to the bear market for multiple years.
This time is different.
Up until the recent price upswing, we had seen many quiet months where the price seemed to do absolutely nothing, or even move slightly negative. With that said, the price always remained in a consistent price range with no real major sell-offs. There was never a moment when there was a real fear that not only had the bear market ended, but that the price was about to go much lower.
The reason for this is that market conditions have changed drastically this cycle. We are seeing constant buying pressure from corporations, ETFs. and Bitcoin treasury companies such as Strategy (Microstrategy), Metaplanet, and the list goes on. With their extreme buying pressure and the Bitcoin halving effects still taking place, there just isn’t enough Bitcoin to go around.
As I mentioned before, the critical thing to remember is that this is natural, normal buying pressure. There hasn’t been a bullish factor to push the market up and cause a stampede rush into Bitcoin.
Until now.
News that has been dominating the market the last few days is how Donald Trump is planning to give each taxpaying American $1,000-$2,000 for tariff dividends. The last time the government handed out large amounts of money to citizens was during the COVID stimulus, when the government initially gave out $1,200. An amount that would now be worth over $20k if entirely invested in Bitcoin.
All of this free money allowed people to have expendable cash to speculate on crypto that sent the market into a frenzy. It’s likely the very same thing will happen this time around.
However, this time the effect on the market will be amplified even further.
There is much more constant buying pressure than there was at any point in 2020. Also, Bitcoin is quickly entering the nation-state game theory stage.
People are waking up to the fact that the US likely will never be able to pay back its debt. The only two options are either to pay back the debt through extreme growth or extreme inflation. More and more people believe the latter will be the most likely option.
When the dollar is no longer the safest currency to use as a life raft, and gold is still as inconvenient as ever. That is the moment people will turn to Bitcoin, and it has already begun to happen.
Bitcoin’s time is now, and if you’ve been investing in it consistently, you’re life is about to change forever.
How about you? What do you think will happen to Bitcoin?
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