Everyone Wants to Know ‘WTF is Going On With Bitcoin’
What’s happening now, faster than anyone could ever imagine, is that “Bitcoin is moving from a fringe esoteric asset to the mainstream.”
This is why we are still early in the game.
Q4 has been an epic one for the world’s largest cryptocurrency. With a 160% uptrend in this quarter, 4Q20 has become the second-best one after Q4 of 2017 in which BTC recorded over 210% gains and hit $20k.
This time, the quarter started just around $10,500 and we pushed through several all-time highs, with the latest one made just today at above $28,500.
But nocoiners are having a hard time understanding why this is happening.
Youtuber KSI with 6.4 million followers asked about what is happening with the digital asset the day it first jumped past $28k.
Wtf is going on with Bitcoin lol
— KSI (@KSI) December 27, 2020
Bitcoin’s price action got another no-coiner Sara Mauskopf, co-founder and CEO of daycare and parenting search app Winnie to enquire about this ‘number only go up’ technology.
“Does anyone understand why?? Not complaining just trying to make sense of what’s going on…” was her exact question.
Even China’s state media continue to feature Bitcoin articles, with the latest one titled “Why Bitcoin repeatedly breaks its ATH.”
“What’s happening now — and it’s happening faster than anyone could ever imagine — is that Bitcoin is moving from a fringe esoteric asset to the mainstream,” said Matt Hougan, a chief investment officer of Bitwise Asset Management.
“If it’s going mainstream, there is just so much money on the sidelines that is going to have to come in and establish a position that leaves me very bullish for 2021.”
In the meantime, Bitcoiners are throwing caution to the wind and going all the way in. As one degen wrote on Twitter, “I sold my house and borrowed from my 401k twice to buy bitcoin and would do it again at current prices.”
This isn't’ the first and this won’t be the last.
Recently, Bitcoiner Peter McCormack also shared how he took out a $46,250 loan earlier this month and bought 2.55 BTC from it. “May do this again a few more times,” he had said at the time.
Bitcoin is actually on track for its longest monthly winning streak in over a year.
Thanks to central banks all around the world running the campaign of debasing fiat currencies, people are realizing the value of a hard asset that not only has a fixed supply but offers asymmetric returns.
Just this Sunday, President Donald Trump signed a $2.3 trillion stimulus into law. New stimulus checks, falling USD, and Brexit fueling investors’ risk appetite.
People are increasingly seeing Bitcoin as a hedge against dollar weakness and risk of inflation.
According to Edward Moya, senior market analyst at Oanda, demand for Bitcoin is “relentless.” “Bitcoin is still the trendy trade on Wall Street and that might not go away,” he wrote. “Volatility remains elevated, but for now seems like it will attract buyers on every major dip.”