The price of Bitcoin (BTC) isn’t so much rallying today as it seems to be triumphantly marching forth. A week ago it dipped thousands in a 24-hour period and convinced everyone it’d be worth about 10K. Now some experts see it reaching 20K by Christmas.
If you’ve been ‘hodling’ your BTC all year we salute your patience. It must have been hard for you not to sell when Jamie Dimon and countless others all said Bitcoin was worthless. You’ve, so far, proven them wrong.
But here we are again with Bitcoin showing volatility that goes in both directions.
Let’s say you bought in earlier this year when BTC surged to a record-high $4,500. You basically have 3 free Bitcoins for the price of one. You don’t have to be Goldman Sach’s to know that’s a pretty good ROI.
However, with each new naysayer declaring the bubble to be upon the precipice of bursting, we inch ever closer to the financial cliff that will ruin us all. Unless it doesn’t, but that’s not the issue at hand.
If Bitcoin is a bubble, when should you pick up your chips and walk away with the house’s money before this whole thing comes crashing down?
The short answer: Who knows? Most likely not today. Probably not this month. Maybe not even next year. Financial experts are having a hard time predicting the outlook.
First things first: Coindesk’s Omkar Godbole indicates, in this article, that things are just fine for right now, and there’s no reason to believe the fabled “correction” is coming in the immediate future. He writes:
Bitcoin could extend gains to $16,194 and possibly even further. A pullback to $11,000 cannot be ruled out, but dips below the upward sloping 10-day MA of $11,500 are likely to be short-lived.
Mission accomplished on the first point, at the time of this writing the current value of Bitcoin has surpassed this prediction. The second point, concerning a pullback, he says would indicate a bearish outlook, but only if it remains low for an extended period of time.
The bull’s eye view seems to be 20K is on the way, perhaps this year. And next year could bring much higher value than anything we’ve seen yet, perhaps due to fear of missing out. Nobody wants to be the only person who isn’t a billionaire because they didn’t understand how cryptocurrency works.
Much more important, and tangible, is Bitcoin futures. CME group will begin trading in Bitcoin futures by December 18th. This could be a game changer. New York’s NASDAQ will also offer Bitcoin Futures, but not until next year. We’ll wait and see how that affects things.
At the end of the day, what you do with your money is between you and your financial advisor. By no means should you make any financial decisions based on things you’ve read online.