The Rise of Bitcoin: A Surprising Phenomenon
Despite the cryptocurrency market still being volatile, it has attracted many individuals who are eager to jump in. However, retail investors have yet to fully flock to the cryptocurrency market en masse.
A Year of Bitcoin’s Ascendancy
At the dawn of the new year in 2023, Bitcoin was still plummeting to a level of $16,000, with many cautioning against prices much lower than $10,000. In fact, Bitcoin remained at the bottom for almost two months before making a comeback at the beginning of the year.
The rapid rise led Bitcoin to reach $24,000 before retracing and attempting to reach the resistance level of $25,000. A rejection occurred here, and the price dropped below $20,000 once again, prompting many to call for new lows.
However, from $20,000, Bitcoin quickly paved its way to the strong resistance at $28,000, which extended to $30,000. This was followed by a period from March to mid-October where Bitcoin struggled within this range, occasionally revisiting the $25,000 level.
Finally, on October 19th, the price of Bitcoin surged, attempting to break the $38,000 level, with $42,000 and possibly $48,000 as targets above.
How Can the “Rockstar” Achieve This?
The problem, according to top analysts quoted by major media outlets, is that Bitcoin shouldn’t be able to do this. How can something described by Jamie Dimon of JPMorgan as a “pet rock” outperform the stock market, bonds, gold, and all other assets in the face of negative press at every turn?
The answer lies in the fact that it has always done so throughout its short history. How can an asset with a scarce supply, a known issuance, immense security, true global decentralization, and complete resistance to government intervention not achieve a performance that stands out?
Bitcoin’s Surprise?
The strangest thing about the cryptocurrency explosion led by Bitcoin is that it surprised everyone. In such a heavily indebted and rapidly deteriorating currency environment, how could more retail investors not participate?
Perhaps the answer to that is that they are doing what politicians, central bank governors, financial agency leaders, and the like demand of them.
With the continued printing of fiat currency, only to pay interest on unpayable debts, ordinary individuals are facing higher prices than ever before for food and energy, on top of the currency’s devaluation. Their currency is working against them with inflation.
READ also Jim Cramer Admits His Call to Sell Bitcoin in Late 2022 Was Premature
It is time for people to stop listening to those who may trap them in the monetary system and prevent them from buying anything outside of it through the force that central bank digital currencies (CBDCs) will exert on governments.
The legal system has died, and the traditional financial system has reached the end of its life. Banks are mere lifeless entities that help suck the life out of ordinary citizens, and central banks strip the middle class of wealth to perpetuate this chaos.
Disclaimer: The information provided is not financial advice. Chinwa.tech does not take any responsibility for investments made based on the information provided in this article. We recommend consulting a qualified specialist or financial advisor before making any investment decisions.
