Is Bitcoin Tulip Mania 2021?

in LeoFinancelast month

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When you look at Bitcoin in a long-term context - as I am doing here with the weekly BTC chart going back to 2016 - it shows a clear story.

Bitcoin is trending up.

This is obvious. Unless you've been living under a rock, you know that Bitcoin has been skyrocketing throughout 2020 and now as we continue through early 2021.

Tulip Mania?

Tulip mania is what the bears refer to when it comes to Bitcoin.

In 2017, we saw a massive run and then subsequent stepping off.

You can see that in the first 1/3 of the above chart.

But now we're seeing another massive run. It does look quite a lot like the 2017 run from this weekly, long-term chart perspective.

Are we running a tulip 2.0 operation?

This Time is Different... Maybe

I like to think that this time is different. Having been around for the last run and now being present for this run, I feel like it is different.

Institutions are buying
USD is being printed to hell
People are stuck at home and forced to learn economics

The world has changed and it is easier than ever to buy Bitcoin. It's entirely possible that this time is truly different but it is equally possibly (my opinion) that this time is exactly the same and we will return down to set higher lows for Bitcoin just like 2017.

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It's a market just like any other, so we're of course going to see a pullback. But the reasons you listed, especially the institutional buying to suck up the limited supply, has seen Bitcoin go truly mainstream.

Any pullback we do see, is in my opinion going to be healthy price action. We're past the point where mainstream media reporting on price swings has any real effect as Bitcoin is now an acceptable part of institutional investment.

Exciting times :)

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I will continue to think of bitcoin as a tulip until I can use it to actually BUY THINGS!

It was more like a currency in 2010 when you actually use it to buy a pizza (or in my hometown you could buy a beer with it)

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I think the current run is over done, and we will see a contraction soon. But longer term I see bitcoin and some prime alt coins cointinuing an upward growth. Bitcoin 200k in 2 years would not surprise me.

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My thoughts too.

I bought my camera https://leofinance.io/@noloafing/selling-my-bitcoin and if it contracts by at least 50% I will buy some more to hold on to as a hedge. But most of my savings will always be in low cost ETF funds.

I'm using activity here and on the main hive chain to hedge my bets that crypto is the future, but as long as its not "doing anything" then its not a currency, and the idea that BTC is a "hold of value" is dumb.

The value of bitcoin was the money for the internet, but if you can't use it like money, its failed.

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I tell you one secret:

Use LOG scale.

Then draw yourself and imagination-type chart, up up up to $350K, and then a terrible Drop by -90%.... down to $35K

New bears, and new bottom in 2023, at terribly low $35000-$38000

Still See anything unreal ?

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Wow. Interesting insight. A dip to 35k after a rise to 350k would be painfull. Remind me to sell high!

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yes, the log charts are an interesting story as well.

The view here is that from the retail investor's perspective: most are looking at this chart and wondering if they're too late to Bitcoin. I think they're not too late as long as they're in it for the right reasons

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In fact , there is no such thing as "to late". Not at all.

There is though a one significant difference:
The longer you wait, and the later you step into cryptos, the LONGER you might need to wait, to really benefit from it.

If you are not very young, and will wait another 5 or 10 years - the odds and chances to benefit moves dramatically from you to your children and grandchildren.

This is clear, and hardly avoidable.

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Repeat of 2017

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I agree with the 3 points you mention at the end of the article. The only bearish sign I am aware of is the result of Tether's lack of transparency and the importance of this token in bringing new money into the crypto ecosystem.

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I believe it’s different in the sense of more mainstream actors are part of this game. But it’s the same as anything tradable on a market, there are cycles, it will go up and it will go down hard as well. Something many people think though is it’s going for higher highs and higher lows.
Better buy now than be sorry in 5 years ;)

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