Bitcoin

JM485 wrote:

In my opinion that would depend entirely on your time horizon. If you’re willing to buy and hold for years I think it could be a...

In my opinion that would depend entirely on your time horizon. If you’re willing to buy and hold for years I think it could be a great time to buy in, however we’re likely in for much more short term volatility and potential drawdowns. I’m currently sitting on the sidelines because I need the money I made for a house down payment if the market drops a bit, but if prices get down to the 10k level I’ll probably seriously consider jumping back in. I still believe in the technology 100%, but I need to have some capital available.

On a little bit more technical level, Bitcoin is trading like a high Beta risk asset at this point in the cycle. What that means is it will be extremely sensitive to changes in liquidity, and as it stands liquidity is being reduced at the fastest rate in history. We saw a massive run up during the most accommodative monetary policy in history, and now we’re seeing a dramatic draw down during the quickest tightening in history.

Like I said though, I’m still a big believer in the space and think this technology could be one of the greatest benefits ever to society by allowing us to opt out of the fiat system, but I think the next few months/year could be a very challenging market.