If there is one thing that I have said the most during the last year, it is that we are living in scary or unprecedented times. Especially in the financial markets. If you have been paying attention, you will have been able to sense an extreme amount of tension in these atmospheres. People are certain that the market is about to see an extreme downturn, and that it will be happening very soon. In anticipation of this, these people have been preparing by doing one of the following. They panicked and decided to sell out of the market. Or, they are waiting in cash hoping to take advantage of the potential once-in-a-lifetime buying opportunity that most feel is on the horizon. Whatever people have decided to do, they are now waiting and watching. One thing is for certain; when the market finally decides what it wants to do. It will do it very swiftly.
Now how does this relate to Bitcoin, Ethereum, and the whole crypto market? It has everything to do with it. But before we get to that point, we need to discuss the current state of the crypto market. We are currently in the doldrums of basically nothing happening. Since the collapse of Celsius, 3AC, and so on, nothing has been happening in the crypto market. We are essentially in the same place price-wise. The market has become pretty born. From the time I wake up until the time I go to bed, sometimes the price is nearly identical. Believe it or not, the worst thing for crypto adoption isn't prices rising so fast that people can't afford to buy coins, or dropping incredibly hard causing people to go broke. But, it is actually when the market is doing nothing at all. When the market is boring. When prices go up, people become excited and FOMO into the market. When prices drop, people often see it as an opportunity to get great value and build their portfolios. However, when prices are boring, people just lose interest and go to do other things.
The last few months have reminded me of previous periods when Bitcoin wasn't doing anything. Towards the end of 2018, the fall of 2019, and the spring of 2020. During all of those periods, Bitcoin wasn't doing anything price-wise and people began to lose interest. This can even happen during both bull and bear cycles. As 2018 and 2019 would have been during bear cycles. While 2020 was during the beginning of the bull cycle. The interesting thing is that there is a lot of advice out there on how to invest while prices are moving. For example, when prices are green and potentially overvalued, don't buy. When prices are down greatly, that is a great opportunity to load up the truck and buy assets. But, what should you do when the price isn't moving?😎
ndriy ndriy
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