Bitcoin and the broader crypto markets are pulling back. Bitcoin slipped below $50,000 today and is currently trading around $49,700.
This is nothing to be concerned about. We’ve come an incredibly long way over the last 14 months. And pullbacks are healthy and to be expected. No asset goes straight up (for very long anyway).
People will come up with all sorts of reasons for the sell-off, but I think we’re just seeing normal volatility. The fundamental picture hasn’t changed. We’re still in an unprecedented world of money printing, piles of debt and low interest rates for the foreseeable future.
If anything, the environment continues to improve. Broad realization about the state of our financial affairs continues to spread. People are looking for hedges. I continue to love bitcoin in that role, as well as gold and silver.
It’s my view that the direction of altcoins will continue to depend on how bitcoin moves. I’m a little wary of Ethereum here, because it’s had an absolutely monster year — and there are still tremendous technical hurdles to overcome to reach Ethereum 2.0 (which will be proof of stake). Transactions are tremendously expensive, and I don’t see that letting up too much in the near future.
That said, I continue to hold and believe we’ve got a lot longer to go in this bull run — especially with bitcoin.