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Happy Birthday, Bitcoin!
A couple of days ago, the Bitcoin White Paper turned 15 years old. In the 15 years since, Bitcoin went from nothing to the powerhouse crypto asset it is today. Bitcoiners remember when it surpassed $67,000 on November 10th, 2021 at the height of the Covid lockdowns and the terrible uncertainties at the time. November, 2022 saw Bitcoin fall to less than $16,500 after the FTX scandal broke out, sending the entire cryptoverse into a tailspin.
Early in January, 2023 Bitcoin began another bull run that has since more than doubled its dollar price where it now sits at $35,447 at time of writing. It's actually up more than 110% in less than a year. Any commodity that performs like that and doubles quickly is called a 'one-bagger'. A ten-bagger is a commodity that's risen by 1,000%. To go from a fraction of a penny to its all-time high means there's no other commodity out there that's performed as well in all of history! This is not a ten-bagger or 1,000-bagger. This 'bagger' is in the tens or even hundreds of thousands. It's mind-boggling indeed. To those who got in really early, congratulations are in order.
In yesterday's daily newsletter from MilkRoad.com, a little tidbit was added that really caught my eye. They point out that Bitcoin was green for both September and October of this year. On September 4, BItcoin was at $25,829 and by October 24, was at $33,846. This has only happened twice before in the years 2015 / 2016. In each of those two years, Bitcoin continued in the green for the months of November AND December. This has got me quite excited. Are we to see a repeat or more precisely, a three-peat this month and the next?
There's also talk of a 'gamma squeeze' caused by 'gamma hedging'. Those that offer options contracts (i.e. Bitcoin) must invest in opposite trades in order to maintain a market neutral position (gamma hedging). The huge recent demand for Bitcoin call options is forcing the market movers into the 'short gamma' zone. In order to hedge and maintain that market neutral position, the market movers must buy more Bitcoin as the price rises, resulting in a 'gamma squeeze'.
Is this why Bitcoin grew so rapidly last week. Sure sounds like a plausible explanation to me. It also means this will likely continue in the months ahead. As the market movers buy more Bitcoin for hedging purposes, its price will surely react positively. A situation like this could very well push Bitcoin back above $40,000 and beyond. I'm not a genius and I don't have a crystal ball but I do have a good nose to sense if something smells good or not and Bitcoin is smelling really good right about now.
This October proved to be a really, really good month for Bitcoin, having increased 29% month over month while Ethereum rose 9%, far less than Bitcoin percentage wise but still a very healthy increase. Looking at it from the opposite hand though, Bitcoin performed more than three times better than Ethereum.
On a lighter note, Sam Bankman-Fried has given his testimony in the FTX trial (he literally implicated himself). There are some closing arguments still but we are getting very close to an answer as to how much time this little weasel will spend in jail. Because of his close ties to the Democrats, he'll likely be given a light sentence, not decades, in penitentiary. I wonder how his parents over at Stanford University are doing???
One last thing, subscribe to Milk Road's newsletter and help me earn a baseball hat, t-shirt and a hoodie. Winters are long and cold here in Canada and a new hoodie would definitely help to keep me warm :-) Subscribe to Milk Road's free newsletter full of the latest Bitcoin news. The newsletter is a 5-minute read, that's it! Their website also has the Bitcoin price in real-time along with some great stories and links. Show your support and subscribe today.
Peace and love to everyone!
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