• John G.

BTC was pumped to new all-time highs by the Bitcoin ETF. Is the next stop six-figures?

Updated: Jan 5

It is worth reflecting on everything that has happened since Bitcoin hit US$20k last December. The 2020 surge was driven primarily by pandemic-fueled inflation fears, meme trading, and the growing institutional interest. This was highlighted most clearly by Coinbase's announcement of its public offering.

Bitcoin has experienced a threefold increase in price, El Salvador purchased it (and clearly Microstrategy), lost half its value, had tens and millions of new market participants, and tens and billions in institutional investment. Then, there was the approval by the US of the first Bitcoin ETFs. And that's without even getting into Ethereum and NFTs, DeFi, or any other madness we've packed into the past 10 months.

Here we are. It's a new record for Bitcoin, and a new record for crypto. There is slowly building fear that things may go horribly wrong.

Remember that December is the month!

For those of us who have been around since 2017, the bull run has offered plenty of déjà vu moments. The charts are showing an increase and the end is in sight so it's worth wondering: Why does Bitcoin seem obsessed with December?

December 2013 saw the second Bitcoin bubble peak. It peaked at US$1000 in December 2016. Then it began an unstoppable rise to US$20k, a price it reached 12 months later in December 2017. December 2018 was the bottom of the bear markets. However, December 2020 saw Bitcoin reach its old all-time high of US$1000 and then begin its steady climb to US$20k, a price it hit 12 months later in December 2017.

Many argue that Bitcoin's price movements can be programmed. This could be a result of declining issuance and higher energy costs. The four-yearly halving events are the reason December peaks occur. There are also others who see what has happened in the past as a probable path to what is to come. Despite their unpredictable nature, markets have a limited number of patterns. Bitcoin could get stuck in a bubble loop.

Is there a certain thing?

However, markets can be extremely complicated and it is important to treat those who forecast its future as such. Bitcoin is unique because it can change sentiment into price with incredible speed. Bitcoin is the original memestock. It can take hold of any narrative and turn it into a self fulfilling prophecy.

Are we now at the end of the ETF's journey? Are we on the edge of wholesale panic and the detonation of the bubble's expansion? Or will we see a break in the trend and show that Bitcoin is a human being? Be enthusiastic, be aware, and be prepared. Do not overtrade. Make sure you know your goal and don't let greed get in the way. You can also say "You know What?" in December if you are ever found saying this. This might just keep going up forever", then maybe it's time for you to sell.