Bitcoin has pulled back significantly, but I still think we’re in a long-term uptrend. I just don’t believe this cycle has peaked yet. With a high of $69,000 so far this year, we’re only up about 3.5x from the 2017 cycle high of around $20,000.
In this environment, with inflation raging, I expect bitcoin to continue doing well. Needless to say, I could be wrong. This is crypto, and anything can and does happen.
We all expected bitcoin to rush to $100,000 after it hit $69,000, but it just hasn’t happened yet.
This is why I don’t use leverage or trade crypto. I just hold. It’s far easier, you’re less likely to lose it all, and it’s a LOT more tax efficient.
High-quality Ethereum competitors like Solana (SOL) and Avalanche (AVAX) continue to do well. Money seems to be rotating into Ethereum scaling coins like Polygon (MATIC). That’s something to watch.
I’ve heard there are a few good zk (zero knowledge) rollup coins out there. That’s a new scaling technology coming to Ethereum soon. Scaling coins are certainly an area to watch. The Ethereum blockchain is still the “chain of record,” but it’s getting more competition and needs to scale ASAP.
Overall I remain bullish, particularly on bitcoin, which has the strongest catalyst driving it (inflation).