So let's start this whole post off with the disclaimer that I am in no way an analyst of any kind other than in psychology. I did do analysis when I was working in that field and it is my degree. However when it comes to stocks or crypto or any other kind of financials, I am no expert. I just say what I observe. Please bear in mind we are all entitle to our own opinions. I am not claiming I am right or wrong, just observing.
So Bitcoin neared an all time high according to the experts, then plunged 3k in 24 hours. There are many theories on why this may have occurred. I will not go into all the theories as sometimes they confuse me. One I do understand is correction. It shot up and so had to self-correct so it adjusted.
I am going to point out that this explosive growth occurred just before Thanksgiving. My theory is that many people were happy to see the price explosion and with Black Friday and Cyber Monday coming up and Christmas just around the corner, people were cashing in on their good fortune so their kids could have a good Christmas, or they finally decided to pop the big question to their significant other and wanted a REALLY NICE ring to go along with it and now they could afford it because Bitcoin and almost all other alt coins decided to explode.
I have been watching for a while now and even when Bitcoin was around 4k, I would watch it creep upwards during the week and then mysteriously on Friday it would lose a little ground. Maybe people having parties? Maybe that weekend getaway that especially now during these strange times is so badly needed? Who knows.
Everyone will have their own theories and experts are more versed in this than me, but I think that the answer is not always what it seems, but is that one event that we neglect to look at because that would be just too simple of an explanation.
P.S. at the time of this writing, Bitcoin is creeping it's way back up to an all time high. It currently sits at $18,860.36 according to Coinbase. Coingeck below shows a little different picture but not by much.
As always, thanks for reading my random thoughts and I hope your holiday season is filled with family, friends, love and good fortune!