“Anywhere you go, I’ll follow you down.”
– Follow You Down, The Gin Blossoms
Bitcoin price on November 9th: $67,582.
Bitcoin price today: $42,283.
Difference: $25,299 (37%).
If you held your Bitcoin from peak to today for the last two months, you lost 37%. That’s math. Ouch. If the stock market dropped 37%, this would be another great recession (or maybe even a depression). Yet, in the crypto world, this is just business as usual. Given the newness and relative small size of crypto (full crypto market is estimated at ~$2T, less than Apple), relatively small amounts of institutional capital can swing the market. This is still less than Apple.
However, for the last decade, crypto has been the best performing asset class. Several times, Bitcoin has lost over 70% of its value. While emotionally, it’s tough to take the losses, and no one wants to put more money in right now, there’s an expression in the the industry, “Buy the dip.”
It is exactly as it sounds. Every previous drop was a buying opportunity that handsomely rewarded people who loaded up at the dip. So, either this time is different, which is possible — and $67k is the absolute top ever, or, now is an opportunity to buy at a lower price.
And, Bitcoin is mostly a proxy for other parts of the crypto world. More volatile crypto assets like the meme coins have moved even more, as have other L1s, like Ethereum and Solana and DAO tokens.
Yet, even as this happens, the crypto world is having more money enter than ever before. multiple multi-billion dollars have been raised and the future looks bright, with new companies and projects promising that Web3 and their related technologies will become ever more part of our lives.
We are also seeing new areas emerging, such as NFTs, and breathtaking valuations of marketplaces and some of the NFTs themselves. Go check out a Bored Ape Yacht Club NFT on OpenSea – you could buy a house, and a pretty nice one, for the price of a BAYC NFT. Pretty amazing.
In this world, this is what the crypto community recommends… (image from Probit Global)
Please note that this is NOT investment advice in anyway.