December 8th, 2023
Bitcoin & Alt-coins
Bitcoin has seen the flip, where now around 90% of holders are in profit. If you read my last blog post, I mentioned the profit taking when it goes up. Bitcoin has been hovering over $43k per coin and alt-coins have pumped along with the gains. One surprising movement has been Solana, I don’t have a lot but enough. People are fomo’ing into Bitcoin and it’s gone up in price fast, from around $37k to almost $45k. So much that Elizabeth Warren wants to shut it down because criminals use crypto. New flash, criminals are going to use every currency, mostly cash. Cash cannot be tracked as easily as Bitcoin can, Bitcoin is tracked on the blockchain, and law enforcement can track crypto for most of the time. I get it though, it’s a new concept, plus most of the older generations thought it was a fad and would go away. Bitcoin dropped in price all 2022, but all 2023 Bitcoin pumped back up in price. NFTs are the beanie babies of this decade, but Bitcoin isn’t going anywhere.
The big money wants in now and they are banking on a Spot ETF for fancy investors to buy into Bitcoin. They’ll approve an Ethereum plus a crypto ETF where it’s got a bunch of others like Cardano and Solana. I get the need for some regulation because those meme coins are lame. I’m not talking about Pepe or Shiba Inu but the coins with a market cap under a million or a few million dollars. I only assume they are bait coins that will rug, that’s where the creator of crypto slowly withdraws gains as people buy in.
That was the case for so many NFT projects in 2022, people thought NFTs were going to make them rich but had no clue that with an NFT you need to find a buyer. Crypto can be sold anytime 24/7 but an NFT needs to have a buyer, sort of like a sports card. My sports card can be worth $100, but if no one wants to buy it and I only get one offer for the card at $50: then it’s only worth $50.
Halving in 2024
The Bitcoin halving is a major event that occurs about every four years, at every 210,000 blocks. It refers to the reduction in the reward that miners get for validating and adding new transactions to the Bitcoin blockchain. When the National Security Agency developed Bitcoin, they created it to have halvings all through this century into 2100. That’s how far ahead Satoshi Nakamoto was thinking when the Bitcoin white paper was written. None of us will be alive in 2123 to see what the price will be for Bitcoin, but I doubt crypto will be valued in dollars. There have been major pumps in price for Bitcoin for these halvings and this 2024 one is no different. Some people don’t understand it in the news where they think a second after the final block of that cycle is mined that the price goes way up. Sure, it’ll go up but it’s leading up into the halving where the price action goes up, like it has all 2023.
We started 2023 out at a $16k Bitcoin price and now at year end it’s at $44k. Increased attention to Bitcoin normally happens for these 4-year cycles, like currently with Bitcoin. In 2021, remember how more attention crypto was getting with SNL skits, commercials, and celebrities talking about it? 2022 was the final year of that cycle and it starts over, where Bitcoin price pumps back up. Cryptocurrencies are now mainstream so this current cycle with major financial people involved Bitcoin’s price could see record levels.
That’s with everyone conscious of taking profits because we all saw how 2022 is a major price dump. There will be a major drop in Bitcoin’s price after this halving event, but it doesn’t die, there will be a major price pump over 100-200%+ like 2023. It’ll just be higher in price because we will never see Bitcoin’s price under $20k again. Those days of bears thinking Bitcoin will drop to $5k or some weirdos think the price will drop to zero. Zero? That makes you look stupid saying that, Wallee, yes you Wallee from City-data.com.
With Bitcoin over $40k each coin, it’s going to be exciting seeing how high this run goes. Last cycle I didn’t have any alt-coins and just had Bitcoin, but this cycle my bags are packed, I accumulated all 2022. Will Bitcoin get to that $100k per coin level? Will people sell off when it gets to $100k? Most likely and probably sell off as we go up. If you look at 2021, Bitcoin had a couple of major drops and then pumps right back up as we hit $60k+.
There will probably be sell offs at all time high of $69k but will the halving coming in 2024 and Spot ETFs, a lot of people will be holding long term still. Ethereum just seems like it can keep going up past all time high and then $5k+ going forward. My blogs aren’t advice but just an observation of crypto, and this cycle I’ll have a major eye on it. My blogs all 2022 were crypto themed and going forward I’ll probably document the crypto market going up and down.
Be a nice human.
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