Bitcoin's rollercoaster has begun! Like always of course!
With many people wondering if the Bull Run is over, many people are wondering what Bitcoin's goal actually is.
There are many different things that have shaken this up for us recently. Markets everywhere are in the scared spectrum of things.
The bad news of not approved ETF proposals, the Coronavirus, and Whales have caused a temporary uproar.
This brought disappointment to many in the short term as most people are more hopeful for huge gains rather than settling and hodling.
If that is you don't be worried! This post is a morale boost as we look into the future for bitcoin knowing what we currently know now.
Bitcoin gains don't happen overnight! In days where bitcoin hits its biggest records, this is usually a matter of rally after a rally over a period of months.
We have the halving to thank and mainstream media. Sadly, I hate to say it but mainstream media has already focused their attention.
It is only a matter of time before markets become more confident and bitcoin's current price hovering above 8k diminishes into the past.
In fact, this could very well be the last time we see 8k this low for a while! My current predictions assume that 7k or 8k won't happen at all until the end of the year.
Bitcoin has attracted a lot of new people in 2020 already. This is scary for Whales who traditionally use the current market rates to their advantage any time they need extra gains.
Undoubtedly enough, Whales still do exist and end up fluctuating market prices to their advantage. This is also why the Government has repeatedly turned down offers to legalize Crypto as an ETF acceptable currency for US residents.
How do whales lose control for this to change in the people's favor?
The simple big picture answer is that more people would need to put their investments into bitcoin or altcoins.
The complicated answer to that involves two questions.
How much money would be needed to turn the tied on Whales?
When?
When we look at when the price of bitcoin moves the most, we have to not look at the price but the overall Total Market Cap for all coins.
Watching this number shows us what the market looks like when whales are involved and when they have pulled out most of if not all of their assets.
During times when the market is scarce and low, the total market cap sits at around $230 Billion USD to around $255 Billion USD.
Remember! That is the total USD value of the entire Cryptocurrency market including Bitcoin, Ethereum, etc.
During times when Bitcoin is in the green and doing exceptionally well, the total market cap hovers around $280 Billion to around $310 Billion USD mark.
The last time we saw amazing highs back in February, we hit a total market cap of $320 Billion USD according to all of the most popular exchanges.
Now we sit at our lowest in months at around $245 Billion USD, which means Whales are, for the most part, out of juice now.
This means that about $250 Billion USD is legitimately sitting in the market because of the average everyday citizen like you and I.
We can safely assume that Whales account for about $50 Billion USD which is the difference between our lowest point and our highest points in Total Market Cap.
Sounds crazy right?
It is! But it is Market Analysis at its finest because while most people pay attention to the prices. It is healthier for investors to look at the total overall volume of the entire market.
It gives us a better idea of when to Buy and Sell!
The downside to this is right now, clearly, there are people that are still using volatility to their advantage in Crypto markets.
The only way to beat them is by numbers.
That number to beat is not far off either! When Whales stress test the market they reach Total Market Cap high points of above $300 Billion USD now.
Our lowest point is around $250 Billion USD if we exclude what we assume whales are using to be fluctuating prices. Anyone who is not a whale would need to sink $50 Billion USD into the Total Market and keep it there in order for us to break $300 Billion USD.
That's a lot of money...
Which means we would need a lot more adoption from people everywhere. Rich investors could help make this happen much more soon.
As Bitcoin goes more mainstream hopefully that will attract both rich investors and low-income investors. The more the merrier!
So we know how much money but realistically, when can we see that actually happening?
To break that threshold of $300 Billion USD in the Total Market Cap, we would of course need time.
Additionally, we would also need Global Markets to start doing better. Which only time can tell of course!
Mainstream offerings of Cryptocurrencies need to sink in more as well. As Tax Season comes to an end we could see a short pump in these numbers.
However, it is not going to be anytime soon that is for sure.
The seeds have been planted and they will need to be watered before they can break the earth's crust and blossom into a giant Bitcoin tree.
Times are going to be rough for the time being and could also be surprisingly friendly before the fog fades away this Summer.
By Summertime we will be passed the halving uncertainty and hopefully past the uncertainty that is this COVID Virus causing pandemics everywhere.
We are in grave times but at the same time, this is the best time to start buying if you have ever thought about buying before.
Whether it be stocks, bonds, Gold, or good ol' fashion Crypto. Buy it and hold onto them for dear life!
This year is going to see some very exciting records 😎
