It's become a thing in crypto to expect bulls and bear markets coming and going in 3-year cycles. But stats and trends are only true until they're not. Prices go up and down when more people decide to buy than sell and vice versa, irrespective of past trends. So are we already inside a new bull cycle?
We all witnessed HIVE rocket up 40-50% this weekend. This also comes on the back of a pretty decent rise in the value of Bitcoin, having stayed steady at about $16,500 for a while during Christmas and new year's eve.
There were some discussions on @thejohalfiles’s post earlier asking if people thought Bitcoin would dip even lower before the turn of the year. My position was that I thought the dip we had seen after the whole shitshow with FTX and SBF, the market had overreacted. Thus, I said I would not be surprised to see at least some recovery. However, I was a bit surprised to see just how quickly it soared back up beyond $20k, having looked a lot like a stable coin at $19k for months prior to the FTX scandal.
That said, I think the reason why some heavy hitters felt the urge to load up on BTC now is the same as why I decided to buy back HIVE 2 months ago at $0,3 / 1700 SATS: Regardless of whether the price keeps on going lower or not, now is still a relatively low price. And IMO, it is better to secure a position at a relatively low price given a strong belief of future returns, than to risk missing out waiting for “the perfect bottom”. AT least that was my logic when I powered up 8k HIVE two months ago.
I don't care if the price dropped a little bit lower after I bought it back (from about $0.3 to $2.5), I only care that I got back in at what I believe was a low price compared to where I think we're going. Likely, people who have been buying Bitcoin the past month have been thinking the same.
So what are your thoughts? Was this just a small bump in the road further down? Or is the market now more mature than it was back when it followed predictable cycles? Anyways, I'll continue to do what I do, and stack the few tokens I believe in while powering up and saving more HBD :).