Bitcoin Pulls Back After Hitting $5000 USD – Why This Is A GOOD Thing!
Josh Sigurdson breaks down the latest news on Bitcoin as the cryptocurrency hits $5000 USD and immediately pulls back as people take profits. While the pullback may seem dramatic to many, especially since most people who have money in Bitcoin only got in this year and are not used to the fluctuations, this is perfectly natural and really a great sign of a healthy market.
While people claim in the media that Bitcoin is in a bubble (as they have since 2011), these frequent corrections are proof in the pudding that it is indeed NOT in a bubble. Bubbles wouldn’t take such frequent breathers.
In June, Bitcoin hit $3000 USD before pulling back all the way to $1800, climbing to $2500 and then heading off to $4400 at the beginning of August where it pulled back to $3900 and then climbed quickly to $5000 USD just a couple of days ago.
Now, this is a lesson in psychology as people sell off Bitcoin, basing it on arbitrary numbers like “5000”. It’s an imaginary fiat landmark and it’s pointless to sell off on such fantasy pinnacles, especially considering in other currencies of course $5000 USD is $6200 Canadian dollars. It’s nonsense but all the same, it provides a great opportunity to buy more.
At the 7 year average daily rate of growth, Bitcoin should hit $250k by 2020.
As the fiat empire comes crashing down, Bitcoin is a savior to those who diversify between cryptocurrency, gold, silver and other assets.
Investors have taken 30 billion dollars out of US stocks in the past ten weeks and it appears they’re putting it in gold, silver and Bitcoin as a stock crash is inevitable. There are now 50 cryptocurrency hedge funds as Bitcoin surpasses Netflix and PayPal in market cap and is coming up on Morgan Stanley which is truly a sign of the times we live in, where cryptocurrency which was once thought of as “geek money” is universally adopted at an enormous rate just since January alone.
The future is bright, but we have to educate people. Far too many people compare decentralized cryptocurrency demand to a centrally planned debt based, manipulated derivatives bubble. Far too many people blindly call Bitcoin fiat despite the whole point of fiat is to create vast amounts out of thin air without scarcity or demand and base it in debt.
With education comes the next renaissance and it WILL come.
Bitcoin will surely break through the ceiling once more in the coming weeks (likely on a Tuesday since traders are historically more bullish on Tuesdays than anything) very possibly. Considering that Wall Steet insiders saw Bitcoin hitting $4000 USD by year end and we’ve already far surpassed the forecast, we’re doing good. Even professional crypto traders saw it hitting $5000 USD by year end. Well by the looks of it, we’ll be seeing $7500-$10,000 by year end.