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RE: Bitcoin Massive Price Drop, Profit Taking, BTFD, And Why There Will Never Be Another "MtGox Event"
No market can sustain an uptrend like the one Bitcoin's been on. This is a completely normal and natural event. When everyone is a buyer eventually someone bails and that's all it takes for the selling frenzy to start.
Taking profits is a good thing. It resets the market and allows it to find fair value and uncover new buyers. We need to know what the bottom looks like before going higher again later.
Sure it can. You just aren't exposed to such opportunities very often. Think buying Apple stock decades ago.
@Kyle.anderson I'm talking about the short term. Apple took 15 years to build its market cap and there were plenty of 20-50% corrections along the way. Markets that go vertical, up or down, are not sustainable. They bottom/top then correct, build a new base and, if the fundamentals are there, continue the trend.
Bitcoin is in a massive bull trend. But, it got way ahead of itself this week. That is all.
I can vibe with that! I agree that without a scaling solution, BTC is overvalued.
Yeah, I was waiting for the correction. I expected it at around 2.5, but then it just kept going. Made me nervous lol.
What's happening right now is natural, like you said.
Crypto still has a small market cap compared to other investment assets, so these sorts of moves can have a big impact.
Thanks for your comment. :D