Market Commentary + Daily Top 10 Tweets
Was the Coinbase IPO a multi-year crypto peak or a short-term peak?
Bitcoin is down ~50% since its high in mid-April—$64,801 to $32,500 (falling to $31,179 earlier today)
Coinbase ($COIN)—the stock—is down almost 50% from $429 to $222.
Ethereum is now under $2,000 after hitting $4,000 in mid-May.
Even the infamous DOGE coin is down $0.68 to $0.18 today.
Overall, if you have purchased any coins since the start of the year, they are likely lower than where you purchased.
Is it a time to sell or buy?
I originally purchased bitcoin after the price fell by 50%. I paid $250 for half a bitcoin. I didn’t have enough funds for a full bitcoin. Then a few months later, I bought the other half for around $187. The market kept falling. Then a few more months later, I bought a few more bitcoin. The market kept dropping. I then purchased a few more. After about 18 months, the price went no where. I promised myself if I ever doubled my money I would sell and walk way—and never look back. Within a few months, I had my chance, and I justified the decision with a few newsworthy events.
One of the core developers lost Admin access to bitcoin. Around the same time, there was global concern that China dominated bitcoin mining and therefore the bitcoin blockchain. As American, I always tend to advocate and support for the U.S. to lead the world in technology, so I was a bit concerned the United States couldn’t catch-up—or worse, didn’t support bitcoin.
In short, I sold my bitcoin around $500. The loss of Admin access and the Chinese influence of the bitcoin mining and the blockchain were the last straws for me. Besides, I had waited 18-24 months before I saw a return on my bitcoin purchases. Only 6-9 months later, bitcoin would cross $1,000 and then $2,000.
Fast forward 5 years
China is cracking down on bitcoin mining and equipment is moving to the United States. Yes, the United States—despite what you may hear U.S. political leaders say about bitcoin. There are several places in the United States that are welcoming bitcoin mining.
Can bitcoin go lower?
Two months ago, most of the charts indicated bitcoin would keep trending higher.
Today, most of the charts indicate bitcoin is going lower.
Can bitcoin go lower? It should can.
Can it go higher? It sure can.
More obvious, why is the price failing? Easy. There are more sellers than buyers. Buying activity is on the sideline waiting for positive activity to respond to.
What do I think? Having bitcoin mining equipment exported out of China into the United States is a positive economic development.