Quitting Crypto | MASS PANIC EXPLAINED
# Bitcoin: Is Now the Best Time to Buy?
## Market Sentiment
So apparently, Bitcoin is garbage. Investors are fleeing. It’s lost nearly two-thirds of its value. And now a new survey says 60% of investors believe Bitcoin is more likely to hit ten $10,000 than it is to rally up to $30,000. That means that these investors expect Bitcoin to fall another 60%. In that survey, a quarter of investors describe cryptocurrencies as garbage. They’re quitting crypto. The world has literally never been as negative about cryptocurrencies as it is now.
## Potential Opportunity
But hold on a second, because that might be exactly why now could be the best time ever to buy Bitcoin. In the past, Bitcoin has followed a classic boom-bust pattern, following it aggressively. To get a sense of where Bitcoin sits in that cycle, let’s take a look at the classic pattern of an asset bubble. As the bubble builds, enthusiasm turns to greed, which then turns into delusion, and then it bursts. There’s always a burst. Post burst, you have denial, then fear, and finally capitulation and despair. It’s only after all of that pain that you see a return to price growth.
## Economic Cycles
Looking at Bitcoin’s price, it looks very much like it’s reaching the capitulation or even possibly despair phase, which could signify a coming return to growth. But we can’t just look at one chart; there’s always more to the story. The first question that pops into my mind is, could this really happen that quickly? I mean, Bitcoin was at all-time highs just eight months ago. Typically, an asset slump lasts much longer than that. But maybe that’s not the case anymore, especially not for Bitcoin, because it looks like market cycles are accelerating.
## Accelerated Market Cycles
During times of growth, people and businesses borrow more money, which leads to more growth and rising markets. But over time, this credit expansion leads to inflation, which triggers a need for higher interest rates. This causes an economic slowdown and a decline in borrowing. Markets fall, and inflation eases up, hopefully. Eventually, interest rates settle down, which makes it easier to borrow again. And so the economy gets back to growth and on and on like that. It’s always two steps forward, one step back when it comes to the economy.
## Central Bank Interventions
Another explanation for these roided-up market cycles is that central banks are enabling it big time. Beginning with the dot-com bust around 2000, central banks like the US Federal Reserve, the European Central Bank, and the Bank of Japan have increasingly stepped in to rescue markets in a downturn. They do this first by lowering interest rates to rock bottom levels. And since the Great Recession of 2008, they’ve also been playing this kind of grand experiment, thanks to Ben Bernanke called quantitative easing.
## Conclusion
So, is now the best time to buy Bitcoin? The accelerated market cycles, along with central bank interventions, have created a unique landscape for investors. While market sentiment may be negative, history has shown that opportunities arise in times of despair. As economic cycles evolve and central banks continue their interventions, the potential for growth in Bitcoin and other cryptocurrencies remains a possibility. It’s up to individual investors to assess the risks and rewards and make informed decisions in this ever-changing market.
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