Wow! What a crazy few weeks. This correction has been brutal. But I remain convinced that we are still in a long-term bull market uptrend. Let me explain why.
Take a look at this chart on Twitter.
This is starting to play out scary close.#Bitcoin pic.twitter.com/ENxTlZilLl
— Root 🥕 (@therationalroot) April 22, 2021
It compares bitcoin’s price fluctuations in the current bull run to the 2013 and 2017 bull runs. And the key takeaway is that similar drops occurred in both 2013 and 2017 before the price pulled back up. So unless we drop significantly from here, this is still a normal correction for BTC.
Also, don’t buy into this theory that a “hawkish” Fed has investors spooked… I don’t think they’re really hawkish. They’re just pretending that they might be hawkish in two years. I think it’s highly unlikely that they’ll actually raise interest rates and stop quantitative easing once another $7 trillion of debt has been added to the economy.
The Fed is always promising to tighten things up “in a few years.” But they can’t do it — it would crash the economy. Instead, the Fed will turn to inflation to handle the debt problem — so they will keep printing and easing until debt is down to a more manageable level in real terms. And that’s not happening any time soon.
So bitcoin has a strong catalyst for years to come. And I continue to see bitcoin as the main driver of altcoins (for now). I still prefer a majority allocation to bitcoin, but I am increasingly evaluating alts. I like our portfolio and am especially watching Cosmos. That said, I am glad we took some profits near the top. I think it was a prudent decision in the midst of a euphoric moment.
If you’re looking to invest in crypto anytime soon, I think now is a fine time to start dollar-cost-averaging into positions.