The Only Reason Everyone Remains Calm As Bitcoin Approaches a New All-Time High
Bitcoin’s goals are now much higher than $20K.
|Sylvain Saurel||Nov 18, 2020|| 4|
The Bitcoin price has just reached $18K. Since the beginning of October 2020, nothing seems to be able to resist Bitcoin in its ascent to a new All-Time High. Bitcoin has crossed all the barriers separating it from $18K with disconcerting ease until now.
Nevertheless, make no mistake. There is nothing magical about the +72% increase in the Bitcoin price since the beginning of October 2020.
The current increase in the Bitcoin price is quite logical
The current increase in the Bitcoin price is the result of many weeks in which Bitcoin’s fundamentals have been steadily strengthening. Since the third Bitcoin Halving on May 11, 2020, the fundamentals of Bitcoin have been steadily strengthening.
This has not directly translated into an increase in its price, but as I advised at the time, we should not be distracted by the ambient noise that described Bitcoin as a boring asset during June 2020.
The real signal is the Bitcoin revolution. And this revolution has never stopped progressing, even though the Bitcoin price tended to stagnate during the first part of the summer of 2020.
The current increase in the Bitcoin price is therefore quite logical:
The Bitcoin rally has continued to be strengthened by the good news
The massive arrival of institutional investors, the arrival of large companies, the green light given to American banks to buy and hold Bitcoin for their clients, or the entry of PayPal into the Bitcoin world were all news that would sooner or later have a strong positive impact on the Bitcoin price.
This is what has been happening since the beginning of October 2020.
Throughout this Bitcoin rally, positive news continued to arrive. This has therefore strengthened the rally a little bit more each time. The election of Joe Biden as the 46th President of the United States is the latest big news that supports the current increase in the Bitcoin price.
Such an increase in such a short period of time has had a strong effect on the market sentiment which has fallen into extreme greed:
In the past, whenever the Bitcoin Fear & Greed Index has exceeded 90, we have seen a significant correction in the Bitcoin price. So we may be entering a “Sell High” phase.
Nothing seems to be able to stop the increase in the Bitcoin price towards a new ATH
In any case, it seems that nothing can stop this rally at the moment, not even Pfizer’s announcement on November 12, 2020, of a 90% effective coronavirus vaccine.
The Bitcoin rally still has some reserves, and we may well see its price reach a new All-Time High in the coming days at the pace things are going.
The market is in a phase of total accumulation, with an average of more than 3,000 BTC being withdrawn daily from the decentralized trading platforms. Miners also choose to keep their BTC obtained as a reward for their mining work on the Bitcoin network.
Everyone believes that the Bitcoin price will continue to rise sharply.
Under these conditions, there is nothing comparable to the euphoria that prevailed at the end of 2017 during the previous Bitcoin Bull Run. At the time, search volumes had exploded on Google for the terms “Bitcoin” and “Buy Bitcoin”:
At the time, Coinbase was receiving more than 100,000 applications to its platform every day. Everyone wanted to buy Bitcoin.
Everyone stays calm for one reason
Currently, that is not the case. Google search volumes around Bitcoin are more than ten times lower than they were during the Bull Run at the end of 2017.
This shows that the Bitcoin price rally we are currently experiencing is mainly due to smart money. Institutional investors and whales are clearly in the thick of it. The general public has not yet returned to the Bitcoin world.
De facto, all the players in the Bitcoin world remain rather calm while the price is $17K.
Everyone is well aware that the goals of Bitcoin are much higher now. Bitcoin is much more mature than it was at the end of 2017. The forthcoming Bull Run will be better controlled and much more sustainable for Bitcoin, whose fundamentals have strengthened considerably at all levels since the end of 2017.
Bitcoin’s goals are now much higher than a new ATH
Euphoria will take hold of the market sooner or later, but not before Bitcoin’s price exceeds $50K and heads towards $100K. Everyone is well aware that the Bitcoin price is set to reach heights that some thought unimaginable only 5 years ago.
Only the older Bitcoiners have always been convinced of this.
They had understood before anyone else that Bitcoin was the money of the people that responded to a need that is becoming more and more essential in 2020: to protect its wealth over time in a way that is resistant to censorship.
Bitcoin responds to the great need that will continue to grow in the coming years due to the endless inflation of the U.S. dollar. The great monetary inflation that we are experiencing requires a weapon to protect us in the best possible way. This peaceful weapon is Bitcoin.
Once Bitcoin has broken its record market cap reached at the end of 2017, the next objective will be to reach a market cap of 1,000 billion dollars.
Then it will be time to think about catching up with gold and its $9 trillion market cap. If it seemed fanciful to imagine this just 5 years ago, today everyone thinks that Bitcoin will be able to do it in the upcoming decade.
With all of these increasingly credible goals for Bitcoin in the coming years, it becomes essential that you stay calm. You will need it to remain a Bitcoin HODLER throughout this incredible adventure that awaits us in the years to come.
Stay strong, Stay a Bitcoin HODLer.
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