The crypto space is on a buzz as Bitcoin ETFs within the first trading month set a new record as the fastest growing ETFs in the history of the US market, with asset worth more than $3 billion . This makes most investors believe that Bitcoin might hit one million dollars in the coming future. Bitcoin surpass the 50k price and build up within 51k and 51,700 dollars as many investors are becoming more speculative. The hyppings of Bitcoin ETFs and the coming halving surrounding the crypto space as attracted non-crypto investors into The ever growing crypto space.
Robert kiyosaki highlighted to is 2.5 million x followers important view that gote crypto communities buzzing.
WHAT AS KIYOSAKI SAY ?
The economic and financial guru, Rober kiyosaki as added another perspective on the crypto market by urging his followers on X (formerly known as Twitter) to buy bitcoin and forget the "fake money system ". In his words he sees the average saver, and government workers/ employees as "losers". Really ? Looks like a plus to the crypto space, as he added that his followers should invest in what he call "safe haven assets". which he pointed Bitcoin as one. Well that was great to admit. But should there be many investors jumping into Bitcoin investment than of Gold, what happens with Gold market ? Well a thread to be weighed, as we carefully do.
MY EARLY MORNING CALL
Just in a tick of time at sharp 6.35 am, Matthew Anthony a friend and a follow market analyst called, as he dragged my attention to Bitcoin slowly replacing Gold in investment and financial market. "I think there will be more Bitcoin investors than of Gold what do you think ?". I pondered on it for some seconds, as I replied, " Gold as been long viewed as a store of value due to its scarcity and durability just as Bitcoin". Over the years gold as been a safe haven and valid means of investment and safety against fiat currency devaluation injected by excessive printing and government economic mismanagement. Gold has a long history as safe haven, and every financial investors (both institutions and individuals). However, things as change. We are in a global digital world where technology as taken over lightening us into the a breath taking possibilities, with the emergence of digital money Bitcoin, which as a far more usecase than Gold. Gold was, and it's never transferable, Bitcoin is transferable, Bitcoin is divisible, durable, verifiable and also very scarce. Bitcoin offers much more opportunities to traders, investors and crypto participant in different levels. Going by expectations and positive comings with what Bitcoin already achieved, it is of no doubt that Bitcoin coin as certainly outperform Gold and win. ( am not suggesting that there will be no more Gold investors. My indications are that Bitcoin offers much more than Gold. I believe it doesn't suggest a total replacement. However, should there by total replacement, it is as to individual investor as touching their investment decisions and want). Considering The ever growing Bitcoin price and scarcity, bitcoin is the safe haven of our days
BUT WHAT HAPPENS TO GOLD IF MORE INVESTORS SHIFT FOCUS TO BITCOIN?
Every happenings in financial market are opportunities. As there come more investors, buyers and traders with Bitcoin, Gold will drop in price to excite buyers and investors. Understand that financial market changes, we as analyst can only make predictions, but can't cause them to happen. As Bitcoin becomes more costlier, market changes over time, and not everyone will love to buy Bitcoin at a particular price, ( according to individual financial level of investment). As Bitcoin, as an investment asset increases in price, the buying power of certain classes of investors decreases, where as some other buyers will not love to buy Bitcoin at a particular price. (Not like they wouldn't have, but the more the price of an asset increases, the more the purchasing power decreases) leading to a shift in the market to the interest of Gold.
WELL NOW STORIES ASIDE, HOW IS THE CRYPTO MARKET DOING ?
Bitcoin successfully hit $52,000, but looks like it's moving or consolidating within the price of $51,000 and $51,700. Bitcoin is greatly doing well. But wait "nick", there is something have been observing recently. Why is Bitcoin at $51k and $52k, but litcoin and every other alt coins ( aside from Ethereum that is pushing well) are still struggling with their initial prices without making good highs ? When Bitcoin was at the price of $44,156 in 06,December,2023
Litecoin was at the price of $74 in that same 06,December,2023
Even with other altcoins, made good highs. Bitcoin pulled back, causing every other crypto to dropped in price,( as Bitcoin controls the market) litcoin dropped to $68 and $69. Now Bitcoin as broken through to highs of about $51k and $52k , but litcoin is still struggling within the price of $69 and $70.33 ( including with other crypto tokens)
The chart below shows Bitcoin at the price of $52300 in 15,Feb,2024
And the chart below shows litecoin struggling within the price of $69 on that same 15,Feb,2024
Including every other altcoins.
Is someone reasoning this with me ? As someone been noticing same lately ? Well probably this must have been on your mind right ? Well this is what have been going on behind you while you kept pondering WHAT THE HELL IS GOING ON ?.
THE SECRET
It's painful when expectations doesn't happen speedily especially when there are every reasons why they should happen. Well the truth is, the big boys (institutions and professionals) are buying or accumulating, so in other to keep things simple, they use a strategy usually called (actually I call) buy and hide strategy, where they accumulate gradually in large quantity, while placing a sell limit order with a very huge amount to prevent the price from shooting up rapidly against their buys. Note, their sell limit order will not be triggered, ( or sometimes might be triggered to push the price lower). It happens this way; as they accumulate or buy, the price of Bitcoin tends to kick up, so they initiat a limit order at Price that might never be filled, but has a powerful effect in the market, pushing the price lower to maintain a level of control over the price, so as not to cause a quick and powerful uptrend that that could activate a crypto market bull run before time. So with that strategy, they could control the price of the asset as they gradually accumulate. Now one will ask, why as Bitcoin hits $52k from what price it where ?, why didn't the strategy maintain the price as at what price the accumulation started ? Well, the financial market is full of manipulations, so what happened is that, the buying momentum as driven Bitcoin from what price it where ( let's say for example $30,000) to $52k with a kind of manipulation strategy that keeps the crypto market in control so as not to drive the prices of crypto asset so high which could cause an early bull market before the major one, and so they try to keep things simple. I hope and believe that my explanations are clear enough nick ? Aright. I appreciate your time reading this post. If you what to follow up market analysis, please check on this blog daily. Thanks !!
