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At the end of March 2021, I wrote an article explaining that the price of Bitcoin would crash again in the future. At the time, the price of Bitcoin was above $59K in a sideways consolidation and all indications were that the price of Bitcoin would exceed $60K with the prospect of Coinbase's IPO in the middle of April 2021.
This article earned me a lot of criticism from people telling me that I had no reason to say that, that this time things were different.
A few weeks later, China banned Bitcoin mining from its territory, and the price of Bitcoin crashed, losing almost $30K in a few days. The people who had criticized me a few weeks earlier were obviously no longer around to talk to me about this article written at the end of March 2021.
Others explained that this announcement from China was an exceptional and unpredictable event. I agree. No one could have foreseen such an announcement at such a time, not even me. However, the reason I was able to write such an article was that I understood what the Bitcoin market was all about.
Bitcoin is the only truly free market in the world
The Bitcoin market is a free market. The only truly free market in the world. Talking about Bitcoin price crashes when everything is smiling and Bitcoin is in a Bull Market does not make you very popular. Nevertheless, my role is not to be popular, but simply to share my opinions and ideas.
Since Bitcoin is a free market, it leaves its users free to find the equilibrium price 24 hours a day, 7 days a week, and 365 days a year. As a result, investors' emotions play a very important role in the price of Bitcoin. So volatility is a feature of the Bitcoin system, not a bug.
When panic takes hold of the market, as it did again in September 2021 when China announced that it was banning Bitcoin from its territory for the umpteenth time, and the Evergrande affair surfaced, the price of Bitcoin dropped sharply again by more than $13K in a few days.
Once again, the volatility of the Bitcoin price has struck.
You must constantly keep in mind what Bitcoin has already accomplished, and the phenomenal path it will take in the future
As I write this, the price of Bitcoin is consolidating sideways around $65K. Nothing alarming, and I don't think we'll have a crash in the next few weeks. Rather, I think the target of Bitcoin in the $75K-$80K area remains as relevant as ever for late November 2021
On the other hand, I think it is worth talking about what can happen in the Bitcoin market when everything is green so that you are prepared to control your emotions when everything turns red. It will happen sooner or later whether you like it or not. The price of Bitcoin will crash again. I don't know when or how, or by how many percent, but it will happen.
When this happens, you will have to be strong enough to control your emotions and HODL Bitcoin no matter what. In such a moment, you'll need to remember how far Bitcoin has come since January 3, 2009, when Satoshi Nakamoto officially launched the network. In just over twelve years, Bitcoin has managed to surpass $1 trillion in market cap without receiving support from private investment banks or governments.
If Bitcoin has continued to grow, it is only because of the conviction of its users who believe more than ever in its revolution: that of a decentralized system owned by its users that gives the power of money back to the people. While the path Bitcoin has taken since its inception is exceptional, it is even more phenomenal to realize that we are only at the beginning of this incredible monetary revolution.
There are currently 7.8 billion people on Earth, and only 130 million Bitcoin users. Of these, at most a third understand the purpose of Bitcoin. This shows the incredible growth potential of Bitcoin in terms of users and price.
Bitcoin gives you back the power over your money by allowing you to accept the greatest freedom of all: the freedom to live your life on your own terms. This is the idea that you should hold on to when Bitcoin's volatility kicks in again in the future.
Focusing on the evolution of Bitcoin’s yearly lowest price will help you stay confident in all circumstances
As such, rather than focusing on Bitcoin's yearly highs, you should look down. You will then see that the yearly lows in Bitcoin's price keep rising over time:
It is these yearly lowest prices that testify to Bitcoin's growing success with the general public and the fact that Bitcoin is indeed a NgU ("Number go Up") technology. This feature of Bitcoin is both virtuous and necessary, as it plays an essential marketing role in making people aware of how different the Bitcoin system is from the current monetary and financial system.
By keeping this in mind, you will be able to stop being frightened by drops or crashes in the price of Bitcoin. You will be able to truly appreciate this unique revolution that we have been fortunate to experience since January 3, 2009.
This message seemed essential to me, as we are at the beginning of a phenomenal Bull Run that will bring the price of Bitcoin towards $100K in the next few weeks. Keep a cool head and never forget that Bitcoin is all about power.
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