Some financial analysts agree that this new bullish cycle will be different from the previous ones, with a less predictable behavior; likewise, they agree that the central axis will revolve around Bitcoin.
In my opinion, it is paramount to highlight that the value of Bitcoin eclipses its price, its value lies in philosophical concepts that go beyond the economic, or at least, that transcend its price. A few days ago we witnessed a new all-time high in its price (ATH) surpassing $69K and hours later it was falling precipitously around $61K. Undoubtedly, a roller coaster of market fluctuations that reminds us of the importance of keeping calm and perspective amid volatility.
Bitcoin has become a cultural and financial phenomenon, appealing to both institutional investors and ordinary citizens who not only seek to park value but also to fly the flag of freedom. However, the speed with which its price can rise and fall can shake principles and ideologies and challenge even the most experienced investors.
From the above, we come back to the same thing, understanding the why of Bitcoin so that we can recognize that its value is not determined by its price at any given moment. Its value goes beyond that, it lies in its technology, its potential, its philosophy, and of course, it is also an important store of value. This distinction born of study and in-depth research is key to engaging in the cryptocurrency market responsibly.
When dealing with a market as volatile as this one, it is imperative to recognize that the line between speculation and investment is a fine one. Speculation, demands managing emotions, both fear and greed, which can lead to impulsive decisions that can result in significant losses. On the other hand, investing based on a solid understanding of the asset it represents, in this case, Bitcoin, can deliver more consistent results if it is intended as a long-term strategy.
We saw it rise and then fall. Not to everyone this may seem normal; in fact, it is pure volatility. If we look at it with critical thinking, such sharp fluctuation requires a lot of cold blood and nerves of steel in order not to fall into despair. If we get caught up in the panic of the moment we will surely be tempted to sell in a desperate attempt to avoid further losses, and then find ourselves regretting that decision when the market recovers. Now, those who enter with a long-term perspective will be prepared to ride out these market fluctuations, understanding that it is necessary to ride out the storm to subsequently profit from it.
For any investor, experienced or not, controlling emotions is vital, and even more so in a cryptocurrency market where volatility is the norm. Cold blood and nerves of steel, sounds easy, not so easy, but keeping calm amid chaos can make the difference between success and failure. This does not mean ignoring emotions altogether, which would be almost impossible, but managing them more wisely so that informed and rational decisions can be made.