Bitcoin Explodes Again
from The Wealth Watchman:
I’ve written at length about the virtues and value of silver and gold, but today I want to speak to another investment that’s getting alot of buzz right now: bitcoin. In the last month alone, bitcoin has blown through short term expectations, showing market participants some serious action in the cryptocurrency space.
It’s been awhile since it had shown signs of life that strong. For those who’ve been wondering, “why has been bitcoin’s price been exploding? Why now?”, this chart underneath holds some clues for us.
As one can see, as in most other things, when China makes a move, it reverberates for the rest of the world. China has been dabbling in Yuan devaluations over the summer, without producing any kind of pop in the price of bitcoin, but finally, after taking more aggressive stances on capital controls, and trying to prevent capital flight(in Yuan), intense interest in bitcoin rose again for those in China, and spread elsewhere.
In less than 3 months, the price of Bitcoin rose hundreds of dollars, from just under $200, to over $500 per bitcoin. That marks a rise of over 150% in under 90 days. The move showcased in this zerohedge chart is impressive, to say the least!
Now, it seems bitcoin’s movement was too far, too fast, and has started a retracement, as it has backed off from $500, to roughly $370 as I type. This is healthy in any market, as the unfolding of time is providing the market an opportunity to pause and digest the gains it made, in order to hopefully establish a new “floor”. If the breakout upward has more room to run(very possible), then this “pause that refreshes” is what’s needed to continue.
There are several important takeaways here for stackers, in bitcoin’s latest price spike, that I want to draw attention to. I’m doing this, because I’ve seen some in our community be rather angry or frustrated about the surge in bitcoin, while silver & gold remain very depressed in price. To my mind, this isn’t the right response…and here’s why…
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