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This is going to be a post really just on my thoughts about this whole situation. First off, I think it is one big joke. I know I see a lot of cryptocurrency traders, especially on Twitter, saying they have lost money because of Elon Musk and his rampant tweeting about Bitcoin and other cryptocurrencies. Well, this isn't true at all. Value may have been lost, but money isn't truly lost unless you sold your holdings at a loss. Since the major cryptocurrency correction, I have sold nothing. I will explain why as we go.
I study economics quite extensively with specific analysis on the US economic system. I can tell you this for sure - it sucks and it isn't getting better. Even by the highly biased and controlled methods of reporting inflation by the Federal Reserve, it is still going up a significant amount, the most since the 08 financial crisis in fact, with the recent reporting of over 4% inflation last month in April. Bitcoin was created in responses to that catastrophic financial meltdown the entire world experienced. Over a decade later, here we are again.
I am willing to bet big money isn't dumb. The fact that Elon Musk can move the entirety of the cryptocurrency market cap by just tweeting a single word is a great deal of power. Supposedly, Elon Musk did not sell the holdings his company has of Bitcoin. A Twitter user by the name of CryptoWhale has confirmed this in some recent tweets like the one below:
So, if Elon truly isn't selling, why would he tweet negatively about something that his company owns? Well from an economic outlook perspective, we have rising inflation, worsening economic data, and a fear that the US Dollar is on its way out the door. All of sudden, because of some tweets by billionaire Elon Musk, the entirety of the cryptocurrency market cap, the hottest rising market in the world, "dips" by hundreds of billions of dollars. If big money and whales wanted an entry point this bull run before it comes to a close, look at the sell off they could be buying into right now. Remember, if you are selling your coins, that means someone else HAS to be buying them. So, who are you selling to?
You only lose money if you sell at a loss folks. This is not financial advice at all, but from a long term analysis I will not be selling anything in the short term. I think after a possible retest of the recent Bitcoin high of $40,000 USD before it ran up to its all time high is a possibility. From there, sky is the limit for Bitcoin the rest of this bull run. I am willing to bet Bitcoin doesn't settle in 2021 for just an all time high of over $60k, do you?
Like I said above, these are just my thoughts. I plan on going into some real, in depth analysis as I move forward.
These are just my thoughts and speculations. This is not financial advice. Please do your own due diligence before deciding to YOLO everything into Bitcoin on this drop. :)
