Bitcoin has been on a great run the last two months. During the last two months it has gone from a price of nearly $28,000, all the way up to nearly $58k. The entire sentiment in the crypto market has changed as well. During the summer, the crypto market had become a pretty bleak place. People's confidence had been shaken. They now were believing that the bull run had ended and we would be hibernating in the bear market for the next few years. It was time to pack it up and go home. But as you know; things turned around and it appears that the bull market is back on. I am as bullish as a person can possibly be. I am incredibly excited for this bull run to continue and for us to reach the price heights that we are all hoping for. It will be life-changing for many people, including myself.
With that said, there is a part of me that would have loved to see the bearish sentiment continue for a bit longer. It was a dream accumulating season for me. Let's face it; crypto has become expensive again to buy. It is becoming increasingly harder to accumulate to our previously set portfolio goals. Now don't get me wrong. I think that bitcoin is still insanely, insanely cheap for where it will be relatively soon. But also, my fiat purchases are only giving me half the amount of bitcoin that I was able to receive just a few months ago. Let's just take a look at the market. Right now bitcoin is priced at around $56,600, ETH is $3,500, Solana is $152, and Polkadot is about $35.50. Compared to just a few months ago BTC was at $28,000, ETH was $1,700, Solana was $30, and DOT was $14. The market can change incredibly quickly in the cryptocurrency world and you need to be ready to take advantage of the opportunities that come your way.
Yes, crypto has become more expensive, but should you stop buying? This is a personal question that you need to ask yourself. It is something that I have put a lot of thought and research into myself as well. I began this thought process during the fall of 2020, right when bitcoin was marching towards reaching it's previous all-time high price of $20k. At the time, there were a lot of people that felt bitcoin had become too expensive to buy. That it would be much smarter to put a hold on purchasing and wait for prices to come down. At the time I came to the conclusion that this bull run may in fact be one of the last truly great opportunities to make life-changing wealth in cryptocurrency. Yes, I believe there will be bull runs in the future. But, this may be one of the last times that we see the market go parabolic. As markets mature, they tend to be more stable and also a bit less volatile as well. So, when bitcoin was at price of $15k last year, I vowed to not take my foot off of the gas pedal, and to continue to aggressively buy. I was buying when it was $15k, $30k, $40k, $50k and $60k. I also continued buying when the prices eventually dropped, and also when they recently rose back up.
The point is; when bitcoin was at $15k, people thought it was too expensive and wasn't worth buying anymore. That they would wait for a better buying opportunity. But, that buying opportunity never came. And what seemed like a very expensive price at the time, is a price that we would all do anything to be able to buy at today. People are saying the same thing about bitcoin's price today as well. The price is at nearly $57k and is too expensive to buy. But then there are countless price projections from analysts calling for a btc price of over $100k, potentially even over $200k. If those prices come to fruition, today's price will once again feel very cheap.
There will be price drops, just like we saw just a few months ago. Volatility can be your best friend, or your enemy. But bitcoin's price has only been above today's current price for 1% of its existence. Meaning that if you bought bitcoin at almost point of it life, 99%, you would be in profits. This is why dollar-cost-averaging is so important. Yes, you will sometimes catch local tops, but you will also be able to take advantage of the price dips as well.
How about me?
As I mentioned before, I am about as bullish as a person can possibly be. I am leaning towards this being the "last cycle." Meaning that this will be the last time we see a parabolic movement, and then after that it will just slowly move upwards in terms of price. Similar to the stock market. My buying strategy is simple. I dollar-cost-average quite aggressively at regular intervals throughout the month. But, I also keep a good amount of cash on the side. When those large price-dip days eventually come; I use that cash to take advantage of the dips. This is the strategy that I have used to build my portfolio successfully and to amounts that I never thought would be possible.
How about you? Do you think bitcoin and crypto is too expensive to buy right now? Is this bull run potentially the last parabolic cycle?
As always, thank you for reading!