Recently, CoinSpeech gathered the most important takeaways from the new video featuring CryptosRUs, where George addressed a recent Bitcoin crash and explained its causes and future implications. You can find CryptosRUs’s new video embedded below.
Is This Really a Crash?
“Bitcoin did crash… we did go from $71,000 all the way down to $67,000,” George pointed out. However, he emphasized that perspective is key. If you zoom out, you’d see that Bitcoin has hovered around these levels multiple times in the recent past. “It’s just a little blip on the way to the next leg up,” he added.
Why Did Bitcoin Fall?
The drop coincides with market anticipation of a Federal Open Market Committee (FOMC) meeting. As George noted, “People are always trying to read in between the lines,” especially when it comes to potential interest rate changes. The anticipation often triggers market jitters, leading to sell-offs. “It happens almost every single time ahead of a Fed meeting,” George explained.
Long-Term Faith in Bitcoin
Despite the volatility, George highlighted that Bitcoin remains a robust investment. “Bitcoin is the easiest way to become a millionaire,” he quoted Robert Kiyosaki, emphasizing that HODLing (Hold On for Dear Life) with periodic dollar-cost averaging is the ultimate strategy. This cycle is unique because companies and institutions are now adopting Bitcoin alongside retail investors.
Institutional Interest
Companies like MetaPlanet and Defi Technologies have recently invested in Bitcoin, recognizing its long-term value. “Now holding Bitcoin is seen as a good idea, not as a bad idea,” George said. This contrasts with the past, when companies like MicroStrategy initially faced stock declines upon Bitcoin acquisitions.
The Reality of Bitcoin’s Supply
“There’s not enough Bitcoin to go around,” George remarked, noting that the growing interest from banks, institutional investors, and retail holders is squeezing available supply. He suggested that even a small influx from the global capital pool could push Bitcoin to “astronomical levels… six figures just getting started, seven figures will happen.”
Hash Ribbons Signal the Bottom
George discussed the “hash ribbons” indicator, which measures miner capitulation and has historically predicted Bitcoin’s bottoms, including its recent one at $67,000. “Think about it… the last time this triggered was when Bitcoin was at $16,000,” he said, suggesting that this is yet another buy signal.
Comparative Analysis with Previous Cycles
Drawing comparisons, George illustrated that Bitcoin’s volatile movements are typical in pre-bull run cycles. “When we break out… we will see $80, $90, $100 [thousand] in no time,” he confidently predicted.
Altcoins and Ethereum
George also touched upon Ethereum’s potential, especially with upcoming ETFs. While Ethereum recently dipped, he believes it’s poised for a significant upswing once the ETFs get underway. “I just don’t see how there’s not going to be a lot of money going into them,” he declared.
Managing Volatility
“When in doubt, zoom out,” is George’s mantra to manage market dips. Historical data shows that those who held on or even bought more during dips were richly rewarded later. He recalled Bitcoin’s dip from $30,000 to $24,000 nine months ago, emphasizing, “Imagine… how happy you would be now if you had listened and DCA’d.”