Economic Turmoil - Fuel For Bitcoin

Didn't you guys and gals get soft during the bull market? It's natural, when everything comes easy and everyone is the next Warren Buffet, you get cozy, pay less attention to what the market tells you and often you are unprepared for... a big dip, or a reversal that brings back the bears in control.

But, when bears come to power, even in a form of a big dip, that's what forges crypto investors, and the more time they've gone through this type of situations and 'survived', the better they do the next time, if they are still around for future battles.

I don't know if this is the end of the dip. Seeing prominent figures buying the dip at levels above 30k, and even above 35k, makes me believe this might be the end of it. But I've said that once before and the bears weren't finished. The 30k area support held though so far.

There are some things we need to account for when we look at this whole thing.

Crypto is one of the few things that performed exceptionally during this pandemic. It helps immensely that other than servers and mining rigs, pretty much everything else can be done remotely.

So, besides the bitcoin halvening and normal bull market that follows, cryptosphere was already ready to take this pandemic head on, whereas physical businesses were not.

But here comes wave 2. Not of the pandemic, hopefully we'll put those behind, but of its economic aftermath.

From what I've read and seen, supply chains will be disrupted not for months, but for years to come. We already see prices rising in fiat terms as a result of that.

Where will more people flee to avoid the inflationary pressure over the next few years probably? Gold, that's a solution. But, I'm pretty sure many will want to try Gold 2.0. So, don't dismiss bitcoin so easily. It still has a potential to rise. Especially since it's being promoted heavily as an alternative to gold by various influencers.

There are, of course, many who lost their jobs during the pandemic. Some of them will likely not find another one as things start to move again in the economy. Where will this people go? What will they do? I have a feeling some of them will try the crypto avenue as well. And they'll stick with it, because they need the income.

Yesterday we had a very red day. Today a very green one. And we had these switches of red-green-red-green on the way down these last few days, with huge volatility. In hindsight, I believe:

• some big investors took profit out
• other big investors accumulated
• leveraged traders got liquidated
• weak hands sold, many at a loss
• strong hands hodled, and maybe accumulated (I played my small part here)
• some traders benefited of the increased volatility (I played my smaller part here)

I'm not saying this is over and we're up for a strong recovery now. We'll have to keep watching this for a while.

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