BTC from 10K to $41K in mere weeks
So, welcome aboard the crazy train (no, not Ozzy's, although that would be an awesome theme song running in the background of this bull market) the BTC express has gone from $10K to pushing through $41K in just four (4) months. Yes, 16 weeks this express train has been rolling. Along this path it has set more ATH than I have fingers and toes.
Update 1/11/21 - BTC has been battered down 20-25% depending on the snapshot you look at today! Recall the dips in '17 we between 30-38% so this blow off pull backs doesn't even register in the Top 5 of BTC restracements.
Several ATH just this week - What ATH have we seen just this week, we had $37K, $38K, $40 and $41K.
Previous ATH's of BTC on this run? $30K was a HUGE milestone then it set another in just an hour! Not to be outdone it continued to $33K in the same day! A move of 3000+ in one day; wow. It appears there is lots of pent up demand waiting to buy into strength! I am not trying to disrepect the ATH's set in the 20K range those just didn't stick around long enough; onward!
Pullbacks seen? - we have lived through two $4000 pullbacks one just this morning. These pullbacks or retracements are part of normal healthy bull run and should not cause you to fret.
What is driving this bull run? Lots of theories running amuck but we can put together a bottom up theory of our own . Institutional investors those firms that have made their purchases public and those that are quietly accumulating! The retail investor that has been purchasing during the quiet period prior to the explosive upward movement. Inflation fighters, those in lockdown learning about cryptos and wanting a secure asset ahead of the Inflationary wave spread like a huge Tsunami across the globe. Need more proof? Here in the US the next President takes office in 12-days and has already proposed a $3T stimulus package or something > 3% of US GDP. Sure each stimulus package has less and less economic impact but, IF one looks at the M2 money supply growth its up over 12% in the past few weeks alone. IT appears, the US money supply is gaining momentum (recall back to Econ 101 days procession and lag). Will the US have another Volcker situation?
Don't overlook the limited supply of BTC. Nope, I am not talking about the 21MM that will be mined. I am talking about the liquid BTC trading in the marketplace. There was an article written last week that 78% of all BTC is illiquid, not being put up for trade. Put another way, being bought and held onto for dear life (HODL). Additionally, you have Institutional investors such as PayPal buying up BTC prior to it being mined. Which further restricts the supply for a liquid market. Lastly I would remind you of the BTC that was been lost due to hard drive failures, stolen or 'confiscated' BTC that will not arise from their graves.
Is BTC out of reach? Perhaps for mere mortals such as myself. So I will look to ETH which has been no slouch itself the past 16-weeks. I am also looking forward to Alt-coin season to start.
Next Stop $50K? Price projections for BTC range from $65K to $220K and beyond?!?
Summary - Very exciting way to end tumultuous 2020 and a Fantastic way to start 2021. Hang on as this train continues to the Moon!
Enjoy the Journey!
