“Catching The Bottom Of Bitcoin Right Now Is Like Playing A Knife”

Bitcoin and Ethereum fall below the psychological threshold of $20,000 and $1,000, respectively, and then turn on, but is that recovery?

Bitcoin, which has been available for the first time since December 2020, falls below $20,000 as investors continue to flee risky assets. Ethereum is also well below $1,000, the lowest since January 2021. It is also the starting point for Bitcoin’s “bottom-catching” buoyant trend as the money market plummets.

As for me, “catching the bottom” of Bitcoin right now is like trying to catch a knife that is being dropped free, but playing with a knife is easy to cut off. The entire crypto market is currently not regulated by the authorities, and it is still operated mainly by greed, investors’ desire for quick enrichment, and forest laws. Participate in a game where victory is in the hands of others (sharks, whales), and then there is only hate.

People I respect and trust, like Bill Gates, Warren Buffet, or Paul Krugman (winner of the 2008 Economic Noble), all think crypto is worthless.

I had been working on cryptography for years before Bitcoin was born and found their point of view right. I’ve never touched anything worthless called digital money myself.

The concept of “cryptocurrency” was born only with Bitcoin. Many people deliberately attach cryptocurrencies to blockchain only for marketing purposes. Blockchain is a “distributed database” – a technology that has been around for 30 years.

After Bitcoin and Ethereum fell below the psychological threshold of $20,000 and $1,000, respectively, they turned on again. But it’s just a classic dead cat bounce. If you look at the market trends, where does crypto go? All investment and speculation markets will remain unstable until inflation is brought under control and warfare stabilizes.

In general, investment and speculation must look at the underlying macro, not the technical analysis or graphs on the phone. These cycles only took place when the Fed lowered interest rates to 0% and pumped tens of trillion dollars to save the economy from 2008. That money now rises and causes extreme inflation. The Fed now raises interest rates and withdraws liquidity. Where does the cash flow into the crypto to pull it up? Every asset bubble will deflate, and the highest risk, the fastest burst, is the crypto bubble.

In short, you must be in love with “trend is your friend.” The money that can try to wag a few sessions won’t escape the free-fall momentum either. Anyone who wants to cut their hand, grab a knife.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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