news Surprised at Bitcoin's performance in late 2020 - early 2021? Here are the reasons why.

[kyoukage01 3181]

14 hours ago, cryptovlek said:

There was a lot of new money entering from some wealthy investors and institutions. 2 billion was the microstrategy purchaces alone, and this could move the market on its own. But sometimes the money ends and the market corrects for some time. This one is not going to be a big problem. Even above $20,000 Bitcoin will still be bullish and only concern will be if it drops bellow this price.

Institution-based investments are going to play a significant role on BTC prices. They wouldn't want to have the value of their investments go lower than the price when they bought it, if anything they'll be happy to see BTC go even higher in the future. They may even have expected BTC price drops and market corrections when they decided to invest.

 

There WAS a brief period of panic a few days ago:

https://cryptotalk.org/topic/110864-crypto-fear-and-greed-index-cfgi/?do=findComment&comment=12725027

but unlike 2017 where BTC went down with a bang, BTC today is still holding on doggedly at the ~$30,000 range. No widespread extreme panic happened despite the news.

 

10 hours ago, percare said:

I will be surprised if this amazing performance just ends here and doesn't continue. But I think that Bitcoin will not require increased legitimacy because this will come with regulations that will change the way it is supposed to be used and effectively remove a lot of the positives it brings as a financial system of its own. Bitcoin is not going to be irrelevant or less used if it is less legitimate, but there will be an effect in the price for this reason.

Institution-based investments as pointed out by @cryptovlek increased Bitcoin's legitimacy as a currency. It is the governments that may be still against it. But unlike before, they now have those institutions who have already invested in BTC to deal with as well. Whatever laws they pass restricting Bitcoin will affect those institutions too, so now they have to think twice before doing so.

 

[Khan 1414]

On 1/25/2021 at 10:40 PM, percare said:

I will be surprised if this amazing performance just ends here and doesn't continue. But I think that Bitcoin will not require increased legitimacy because this will come with regulations that will change the way it is supposed to be used and effectively remove a lot of the positives it brings as a financial system of its own. Bitcoin is not going to be irrelevant or less used if it is less legitimate, but there will be an effect in the price for this reason.

There is still room for the BTC pump and it will occur but now the predicted time is change because of the fall down of the Bitcoin price, its not confirmed that when it will be exactly pumped again.

[percare 3192]

2 minutes ago, Khan said:

There is still room for the BTC pump and it will occur but now the predicted time is change because of the fall down of the Bitcoin price, its not confirmed that when it will be exactly pumped again.

All markets are down today. Again, it is the coronavirus fears and the prolonged lock downs, travel restrictions and the inability of governments to provide vaccination correctly that prompted markets today to dive.

 

 

European markets are also down, so is oil.

[tienda 8776]

Without the doubt Bitcoin will pump again, but the date exact will be an incognito! Bitcoin  will across 50000 dollars sure for this year, maybe more than 50000. So in short or long time Bitcoin will come back as always. So I'm sure Bitcoin will surprise us again.

[Anastasiaa 27]

Bitcoin performance at the End of last year was Remarkable, the bull run started also late last year but its currently taking a slow pace .

 

[Malikjnb 1235]

You post is very informative. We all knows that bitcoin has surprised everyone in the end of 2020 and start of 2021. I think bitcoin demand is high in these days. Therefore it's price will rise up. I suggest you to invest in bitcoin and earn a good profit.

[kyoukage01 3181]

2 hours ago, Fokachopper said:

The main reason for me is that there are now whale investors in the bitcoin world, what do I mean? I want to say that there are companies that are buying bitcoin as a reserve of money and that is why the increase of bitcoin and allcoins. But don't forget that when these millionaire investors start withdrawing their money, Bitcoin is going to plummet to the ground. this is something to watch out for.

A common tactic used by whales is that when they start to dump the Bitcoin market by selling their BTC assets, and BTC prices start to fall as a result, they'll wait for the prices to hit rock-bottom, then buy BTC again while they're cheap, wait for prices to rise again, then rinse and repeat. You may be right in saying that we should watch out when these millionaire investors try to dump the market, but price crashes could also be a buying opportunity for other investors.

 

[Dorjoy12 8962]

On 1/10/2021 at 12:06 PM, kyoukage01 said:

If BTC's price falls though, this means buying oppotunities, and this time larger corporations might take part.

I feel like this time btc wont dump like we are thinking now as there has still huge support  on btc you know well. Did not you see whenever  btc goes down big company  invest on it and the btc hype  Again  increase  on such as previous  day elon musk Twitter  sign of btc..which lead investor  come on it more.. 

[kyoukage01 3181]

On 1/31/2021 at 1:18 AM, Dorjoy12 said:

I feel like this time btc wont dump like we are thinking now as there has still huge support  on btc you know well. Did not you see whenever  btc goes down big company  invest on it and the btc hype  Again  increase  on such as previous  day elon musk Twitter  sign of btc..which lead investor  come on it more.. 

Bitcoin was able to stick to the ~$30,000 range like glue despite some setbacks we've been reading in the news lately. Not like 2017 where just a few pricks of a needle made the bubble go "BOOM!"

Spoiler

Timeline of the crash

• December 17, 2017: bitcoin's price briefly reaches its all time high of $19,783.06.^[38]
• December 22, 2017, bitcoin fell below $11,000, a fall of 45% from its peak.^[39]
• January 12, 2018, Amidst rumors that South Korea could be preparing to ban trading in cryptocurrency, the price of bitcoin depreciated by 12 percent.^[40][41]
• January 26, 2018, Coincheck, Japan's largest cryptocurrency OTC market, was hacked. 530 million US dollars of the NEM were stolen by the hacker, and the loss was the largest ever by an incident of theft, which caused Coincheck to indefinitely suspend trading.^[42]
• From 26 January to 6 February, the price of bitcoin halved, and reached 6,000 US dollars.^{[citation needed]} Additional negative news for the cryptocurrency market continued in the first quarter of 2018.^{[citation needed]} The price remained low though the level slightly recovered in the first quarter of 2018.^{[citation needed]}
• March 7, 2018, Compromised Binance API keys were used to execute irregular trades.^[43]
• Late March 2018, Facebook, Google, and Twitter banned advertisements for initial coin offerings (ICO) and token sales.^[44]
• November 15, 2018, bitcoin's market capitalization fell below $100 billion for the first time since October 2017 and the price of bitcoin fell to $5,500.^[45][46]

source: https://en.wikipedia.org/wiki/Cryptocurrency_bubble

 

We are now at a point where we can no longer compare 2017 and today as the same. As you've said, big companies invest whenever BTC goes down, and this may be true. In any case, regular crypto traders are not the only major ones today who will buy BTC if it starts to dip. I think this article in Cointelegraph can explain things better than I do.

https://cointelegraph.com/news/bitcoin-s-2020-explosion-is-not-the-2017-bubble-again

Take note that this article was written in December, almost a couple of months ago.

 

As for Elon Musk's tweet though, it seems this news has been forgotten as today BTC falls back to $32,000, as this other article indicates.

https://finance.yahoo.com/news/bitcoin-falls-back-32k-elon-192230005.html

 

Edited February 1, 2021 by kyoukage01

[Dormilon 2183]

On 1/10/2021 at 2:06 AM, kyoukage01 said:

We are currently testing uncharted waters with Bitcoin. We will see whether or not a negative news or event will put a stoppage to its rise. If BTC's price falls though, this means buying oppotunities, and this time larger corporations might take part.

@kyoukage01 What is clear is that the price of BTC can be manipulated by people who have a great influence on social networks, Elon Musk and placing the image of bitcoin in his twitter bio and the rise that the currency registered for that event It shows that this thesis is true, when people find a known interlocutor who says something they tend to follow him, you always have to know that these uploads are ephemeral and the currency will fall again when the announcement fever passes, thanks for the contribution to the forum, greetings .

[Dorjoy12 8962]

14 hours ago, kyoukage01 said:

 

As for Elon Musk's tweet though, it seems this news has been forgotten as today BTC falls back to $32,000, as this other article indicates

Nice explanation  you have put  up brother and yah now bitcoin price  is unbeatable  while i do not think we will get again a opportunity  to buy bitcoin in cheap rate as like last year  on 4k usd😑😑..  But ofcourse there has an dump after pump.. I think this is the time to be serious  with bitcoin investment  than real investment.. 

[kryptonick 2659]

On 1/10/2021 at 8:06 AM, kyoukage01 said:

• Fear of missing out (FOMO)
• Demand for inflation hedges
• Increased legitimacy

I agree completely, but the FOMO factor is what comes later, right after Bitcoin made that 1000% jump in just a few months time. We are in FOMO today, I don't know if you all have faced the same as me, but I get contacted often by people that know I am in crypto and ask me for information.

One of them told me a couple of weeks ago that he bought (of course he bought the top at $58000) and how he was frustrated about price dropping right the next day. He was lucky he asked me and not just sold at the bottom when he called ($45000) which was a price I was re buying some. However, I don't plan to give any more advice to beginners, not because I am a bad person, it is just that I can't trust they won't blame me for their mistakes. This is an advice I hope everyone is following as there are many stupid people that will try to put the blame of their decisions to others.

The increased legitimacy was a big part of everything. The inflation fears was one factor to consider too. I think there wasn't FOMO early though. It was mostly fear that the halving will not produce results like other times, because the economy was going to collapse and drag Bitcoin together.

Whales after the halving stopped selling all together. We also had Paypal buying, companies and lately Tesla which probably was the reason for the recent ATH at 60k. I am expecting now to see some more buyers come to sustain the price as the whales don't seem to be selling everything, but only a small part of their Bitcoin and the top wallets are still full.

[pablomarwan 3082]

There is a difference between now and what the situation was during the past years. All the information that I have said is the reason why Bitcoin's price has resisted falling again. Because as we all know that Bitcoin did not have previous support like now, and also the market makers are one of the reasons for the collapse of the price every time because they were manipulating the price in addition to that they were working for the period in which Bitcoin will be legislated.

[Malik jnb 704]

I think your post is very informative and useful for me and thanks for sharing this useful post. We know that bitcoin has good performance in end of 2020 and early of 2021. I think in these days some big investors invest in bitcoin . I know one Elan Mask. 

[kyoukage01 3181]

10 hours ago, kryptonick said:

One of them told me a couple of weeks ago that he bought (of course he bought the top at $58000) and how he was frustrated about price dropping right the next day. He was lucky he asked me and not just sold at the bottom when he called ($45000) which was a price I was re buying some. However, I don't plan to give any more advice to beginners, not because I am a bad person, it is just that I can't trust they won't blame me for their mistakes. This is an advice I hope everyone is following as there are many stupid people that will try to put the blame of their decisions to others.

Your decision not to give any more advice as you stated, nobody should hold you in contempt for that. You can point out that the same thing may have happened back in 2017 right before the Bitcoin bubble burst when some of the earlier crypto enthusiasts may have lost some of the trust and confidence among their peers for giving advice on buying Bitcoin when it was too high at that time; and you simply don't want the same thing to happen to you. I think what you can just say as an advice to others for the time being is to know the risks first before investing in crypto, and not have your advice taken blindly without serious thought.

 

Come to think of it, the investors who bought overpriced BTC in 2017 can stop crying and blaming their advisers, because today their investments have doubled/tripled with BTC currently touching $60,000 every now and then.

 

10 hours ago, kryptonick said:

The increased legitimacy was a big part of everything. The inflation fears was one factor to consider too. I think there wasn't FOMO early though. It was mostly fear that the halving will not produce results like other times, because the economy was going to collapse and drag Bitcoin together.

The investors have 2017 to compare to. The bullrun that year lasted only for a short time then "BOOM!" down it went. This year is different. Bitcoin started its bullish trend during the late quarter last year, and even now has maintained its higher price months later despite some occasional market corrections. I think that was when companies realize that there won't be a repeat of 2017 and thought that investing in crypto isn't such a bad idea after all, and the earlier to jump ship, the better for them. And I think the companies are not investing for the short term either: I'd like to see BTC's price tag at the next halving, four years from now.

 

10 hours ago, kryptonick said:

Whales after the halving stopped selling all together. We also had Paypal buying, companies and lately Tesla which probably was the reason for the recent ATH at 60k. I am expecting now to see some more buyers come to sustain the price as the whales don't seem to be selling everything, but only a small part of their Bitcoin and the top wallets are still full.

Whales are too scared to come out to the surface 😂 because they fear of getting slayed in no time flat. I had this view commented on an earlier post.

On 2/11/2021 at 10:33 AM, kyoukage01 said:

IMO, the move by big companies to invest in crypto has made a new side effect: old whales are now afraid to dump the market, especially with BTC, at this time 😂😂🤣 . They know that if they try the old move where they "dump the market, buy coins when crashed, wait for market recovery, then rinse and repeat," big companies like Oracle(?) are waiting for them 🤑 . With them out of the picture, only major negative news and a bit of market correction can lower the price of BTC now.

 

Edited March 23, 2021 by kyoukage01