Market Update

What a day in the markets. Bitcoin lost its footing and now is back to the low $25K’s bringing most alts down with it. The difficulties for me in this market is to try and time the market in the short term and sharing what I do. Mainly because I can understand what it is to be semi new to this space and seeing everything crashing around me. It doesn’t matter to me but for others this can be a scary time especially when you see your portfolio dropping each consecutive day.

The reason why I persist in dollar cost averaging and why I don’t care about short term price movements like this is that I know what it looks like during an accumulation phase. Market makers and whales are using these opportunities to scare people out of their coins. Look no further than 2016-18 where we had 3 times where we fell almost 40% and had another 2 times where we fell over 30% and right before we had the blowoff top to $20K we fell 29%. Imagine holding though all of that? This time will be different in my opinion. As Bitcoin matures, it should fall less and less(percentage wise) each consecutive bear market. This bear market was not nearly as bad as prior bear markets especially if you held your coins off lending platforms and into self custody.

In the meantime my encouragement to you is to have a broader view of this market. Pan out if you need to. We are only 7 months away from a Bitcoin halving event and we have a Bitcoin spot ETF that should be passed either late this year or early next.

In the meantime, try and relax. This is crypto. It is NOT traditional finance where they have circuit breakers and the ability to halt markets and where the Fed has a trading desk to inject liquidity into the market any time it slumps. This is what a free market looks like. Crypto is still the wild west but with much more infrastructure in place. We have no bailouts BUT we get to invest our money into companies on the ground floor. I wouldn’t trade that for anything.

Toby