Bitcoin has famously been dubbed as both "digital tulip bulbs" and "digitial gold". I am here to tell you, there's no difference; Despite being dubbed as a "safe" investment, gold had it's very own "tulip mania" phase, and Bitcoin, fundamentally similar to gold, is likely to exhibit similar behavior. Human psychology is the same, and the asset class is similar.
When gold peaked out, you can see the momentum moved faster and faster and faster, until a final climax. You can imagine the scene. Early investors boasting their massive returns and telling everyone to get in now before they get priced out and can't afford a single ounce of gold. Plus you would have the late investors in gold screaming that gold is the new paradigm, predicting a movement to $10,000 over the next year and then higher. It was peak mania.
We saw something vaguely similar with Bitcoin when it made the peak around 60k, but it wasn't truly peak mania in my opinion. I think that when Bitcoin truly makes it's Forever Peak, it will exhibit similar behavior to gold, and move up faster and faster into the peak. You can also see that during every major peak in Bitcoin history, this has occured. So it seems like we will get one last run up. If this is not the case, then I guess we already made the peak and it's time for the correction. Possible!
This idea has something to make both the Bitcoin bulls, and the Bitcoin bears happy. I think the price will rally, but I also think that it will never break the high formed during the mania phase.
When gold peaked out, you can see the momentum moved faster and faster and faster, until a final climax. You can imagine the scene. Early investors boasting their massive returns and telling everyone to get in now before they get priced out and can't afford a single ounce of gold. Plus you would have the late investors in gold screaming that gold is the new paradigm, predicting a movement to $10,000 over the next year and then higher. It was peak mania.
We saw something vaguely similar with Bitcoin when it made the peak around 60k, but it wasn't truly peak mania in my opinion. I think that when Bitcoin truly makes it's Forever Peak, it will exhibit similar behavior to gold, and move up faster and faster into the peak. You can also see that during every major peak in Bitcoin history, this has occured. So it seems like we will get one last run up. If this is not the case, then I guess we already made the peak and it's time for the correction. Possible!
This idea has something to make both the Bitcoin bulls, and the Bitcoin bears happy. I think the price will rally, but I also think that it will never break the high formed during the mania phase.