Although it did hit $69K last week, the fact that Bitcoin is down to $59.5K has some people shocked or even scared. Please stay calm, it is a temporary shake out. As the price appreciates there have to be dumps mixed in, to shake out the leveraged long positions, and after that is done the price will bounce up. Below is a funny picture of how this works from a human psychology perspective:
In March 2020, Bitcoin was $3,800. That fact that it dumped to $59.5K is a celebration, not a reason for fear. Buy the dip. Neutral ATM bought Thursday and again today. We are happy it’s under $60K. We will be much happier when it pumps over $120K. The only question is when?
Put this into perspective. In this next chart. Daily miner revenue per terahash. We can see as more terahashes of mining power go online, miner revenue per terahash goes down. That brings more and more security to the Bitcoin Blockchain. Added security means added decentralization. See the chart below:
The more miners online, the harder it would be to corrupt the blockchain. Then you throw in the difficulty adjustment on the algorithm the miners are using, and that keeps each block being added close to every 10 minutes. Bitcoin is getting stronger every time hash power is added. Thus, more reason not to worry about this small and insignificant pull back this week.
The next chart is Bitcoin priced in M1 money supply. Money is being printed faster now that the infrastructure bill has passed. Once this shake out is over, expect the bulls to take over, once again! Here is the Bitcoin/M1 chart:
The M1 chart on fred.com is even more interesting. Money supply growth is the antithesis of the scarcity of Bitcoin. This chart explains the chart above it:
As long as fiat currency is backed by no hard asset, private central banks control it, they can loosen or tighten money supply at their whim, Bitcoin will always have the best number go up technology, the best hedge against this hidden tax, inflation. So buy this dip, Bitcoin will bounce big time! It could easily be in the $70K’s sometime next week! Even sooner!
Neutral ATM buys and sells Bitcoin as little as $20 at a time! You do NOT have to buy an entire Bitcoin. Neutral ATM is here to get everyone off of zero Bitcoin.