Bitcoin Dominance Falls, While Whales Accumulate
Bitcoin price continues to consolidate, and the overall Bitcoin dominance is now at 46% for the first time since 2018. It seems like retail interest is starting to shift away from Bitcoin because the price is too high. Let’s be honest some Alt Coins will have significant success, and people will make a fortune, but the majority will wind up being big losers and probably fold. Do you think the whales are loading up on altcoins like XRP, ADA, DOGE? Maybe but probably not, and this is why.
Bitcoin has been around since 2009, and it’s just now starting to get adoption and approval from institutions and businesses. Retail investors are dumping money into altcoins, hoping it turns into the next Bitcoin. Again, maybe a few altcoins will become a success, but I’d rather invest in a proven asset that has consistently had returns of 200% since inception. Nothing has changed with Bitcoin, but the crypto ecosystem has become a lot more competitive with other options. Whales will continue to buy more while Bitcoin dominance slips, and you should too for these reasons.
With Bitcoin Dominance sinking to 46%, money is pumping into various alt-coin options. The consensus is alt-coin season has just started, and BTC is going to take a nosedive. During this time, I continue to dollar-cost-average into my BTC holdings. Much like sports MLB, NFL, NHL, all seasons come to an end, and I’d rather stay invested in the king of crypto because, since 2009, Bitcoin has continued to rise by at least 200% a year. Whales don’t care about alt season. They love it because it acts as a crypto version of Black Friday, and the sales are too good to miss out on.
Bitcoin Is Scarce
Bitcoin’s scarcity plays a considerable role with institutions FOMOING. If you don’t already know Bitcoin has a limited supply of 21,000,00, there will never be more than this amount. Currently, 18,702,281 have already been mined into the ecosystem and, this is why whales consistently buy. I can imagine their thoughts are if they own the monopoly of Bitcoin, they will still have complete control over the financial market. I’m hoping most retail investors can catch on to the price manipulation that’s going on and stay calm. So make sure you HODL and never let go of your Bitcoin, and treat Bitcoin as if it’s the most significant investment in your life.
Market shakeouts happen all too often, especially in crypto! With so many new people buying Bitcoin every day, new retail buyers only think it can only go up, and this is the farthest thing from the truth. Day-to-day, Bitcoin is very volatile and, someone always buys the top. The unfortunate part is lots of new buyers have not done their due diligence and didn’t account for a 10% drop right after investing. What happens next is many investors exit their positions simultaneously due to fear of losing more money and uncertainty. Before you know it, Moby dick swims along and takes all the Bitcoin for pennies on the dollar and, retail investors instantly regret panic selling as the price bounces back quickly right after.
Jamie Dimon Is A Liar
The proof is in the pudding, and Institutions are trying to get their fair share of crypto revenue. Jamie Dimon is one of the most respected CEO’s among institutions. He said back in 2017, Bitcoin is a fraud and, “if you’re stupid enough to buy it, you’ll pay the price for it one day” Now that it is 2021, Jamie Dimon just announced that JPMorgan Chase would be offering a Bitcoin Fund as early as this summer. Institutions are getting FOMO of mass adoptions, and they fear losing business. Whales like Jamie Dimon only care about the bottom line. People won’t forget how quick you are to have a change of heart. Just buy Bitcoin through a digital wallet like Coinbase or BitGo, and watch the institutions begin to panic and start asking for regulations, as they start to lose power.
When someone asks you to take a seat on the rocket, don’t ask where you are sitting. Just hop on and enjoy the ride. The highs of Bitcoin are like nothing else and, the lows can be depressing. Whenever you feel the market corrections are getting hard to stomach, realize that institutions are still accumulating, hoping you sell. Enjoy alt-season but don’t take your eyes off the prize (Bitcoin) because as soon as you do, it will be at 100k, and you will have missed the ride up. Everyone has different financial goals and, if you feel comfortable with taking profits, I have no problem with that. But please don’t sell for the sake of panic. If you do, the institutions win. You are supposed to buy low and sell high, not the opposite. But if you choose to ride the storm out through the ups and downs, don’t look at the market every day because it will drive you crazy, especially if you invest a significant lump sum of money. Change your habit and only look weekly, monthly or yearly. Doing this will ultimately take the emotions out of the volatility and give you more peace of mind.
Stay safe and,HODl on!