Is the Bull Run Over?
Those who follow the markets probably realized that BTC took quite a tumble in the last week or so. We are talking about a dive from more than $65,000 to a low of $55,300.
https://img.inleo.io/DQmP82PHsqZPEkPv67zReGiZxJy9VydgrnS8V35MRK15QW6/bull-8614815_1280.webp
Now, I'm the last guy to panic easily, but I gotta say, this dip has me scratching my head. What's the story here? I've been doing a little research, and I think I might have an inkling.
Remember all of that fanfare around spot Bitcoin ETFs?
Seems like they could be the problem kids. We are now seeing some heavy outflows from the products — over $500 million pulled out in only three trading days! That is some serious cash heading for the exits.
But is that just a blip, or is it the end of the 2024 bull run? I mean, seriously, this bull cycle has been pretty wonky from the get-go. We've hit way higher than most people expected at that all-time high and have yet to see any post-halving action follow the normal playbook.
My thought, and what some people are trying to say, is that possibly all of the good news, for example, with the Fed cutting rates and Trump being very crypto-friendly, has already been priced in. If true then I'm afraid to say that we are in for a rough ride.
But you know what? I am not ready to throw in the towel just yet. Bitcoin has always been one surprise after another, and believe me, I've seen it rise from far worse positions. When everybody thought it was dead after that 2017 crash, yes, look where we are now.
So, what do I think about all of this?
Well, I think that, in the short term, we are in for choppy waters. Those ETF outflows are no joke, and quite clearly, they are having an impact on price. I think that this is not the end of the road for the upward momentum of Bitcoin.
Reason is:
One, the fundamentals have not changed. Bitcoin has remained and continues to be a scarce, decentralized asset it has always been. Two, we have a whole slew of potentially market-moving events from the interest rate decision by the Fed to the ongoing presidential race. Yeah, I said earlier people claim it's been priced in, but that's just speculation; these events, if not dramatic, will still have some effect on price action.
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My advice: don't panic.
If you genuinely believe that Bitcoin is here for the long term, then this could well be a good time to buy. But, as always, invest no more than you can afford to lose. It's a wild ride with this crypto, and you've got to prepare for some serious ups and downs.
Posted Using InLeo Alpha