The value of Bitcoin has declined more than 10% from its peak and its adversaries are celebrating this week as bitcoin has fallen all the way back to… $97,000.
It is still nearly $100,000 for one bitcoin. It is astonishing to me to consider that the “dip” is back to just beneath that significant benchmark, and truly illustrates how much this asset has advanced over the last 15, soon to be 16 years.
Year-to-date, bitcoin has increased over 128%. According to historical patterns, it is entering its third year of appreciation before undergoing a major correction. This indicates to me that bitcoin isn’t finished rising yet, it’s merely taking a pause before its next upward movement.
#Bitcoin is expected to keep rising through the next year, in line with historical patterns 👀
How high will BTC ascend in 2025? 🚀 pic.twitter.com/VFX6jNgvvP
— Bitcoin Magazine (@BitcoinMagazine) December 13, 2024
HODLing bitcoin can be frightening at times for newcomers to the Bitcoin sphere. This asset experiences volatility in both directions – which is fantastic when it’s climbing, but makes people reconsider their lives when it’s decreasing. If you are inexperienced and purchased at the recent peak of $108,000 and are in a panic, take it from me, someone who has engaged with Bitcoin for almost eight years – you’re going to be alright.
This is a standard pullback and the only concern should be accumulating more bitcoin today than you did yesterday.
Understanding the principles of Bitcoin and grasping this new asset class is more crucial than stressing about Bitcoin’s daily price movements. Bitcoin is a ferocious entity and will experience declines just as intensely as it surges. This volatility, even during declines, is beneficial for various reasons – it creates opportunities. Particularly for newcomers to take advantage of acquiring bitcoin at lower prices than when they initially invested.
Whenever you feel uncertain, it’s always vital to step back and assess the path that bitcoin is on. Bitcoin faces two potential outcomes:
1.) Bitcoin will collapse and drop to $0.
2.) Bitcoin will thrive and attain a price range in the millions and beyond.
I believe Bitcoin has demonstrated that it will not fail, thus option number 1 is not feasible. This suggests that option number 2 is the more probable outcome.
If option number 2 is destined to occur, then you should accumulate more bitcoin during each downturn.
When in doubt, step back.
HODL ✊ pic.twitter.com/mr61ppIn3Y
— Nikolaus Hoffman (@NikolausHoff) December 20, 2024
This article is a Take. The views expressed are solely those of the author and do not necessarily represent those of BTC Inc or Bitcoin Magazine.