Since the low of $66,880 before the US election, BTC has risen 47%, and has increased by 130% year-to-date.
The excellent performance of BTC relative to traditional assets is undeniable; Bitcoin's market cap has now surpassed Saudi Aramco, solidifying its position as the seventh largest asset globally, with a valuation peaking above $1.9 trillion.
Now Bitcoin is close to $100,000, so the question arises: should we sell now?
The reality is that indeed some investors have started selling. Bitfinex reported unprecedented capital inflows and strong institutional demand for Bitcoin, pushing it close to the historic $100,000 mark; however, long-term holders (LTH) have also started to take profits.
Despite facing profit-taking resistance near $99,588 (its latest historical high), BTC has shown resilience, stabilizing around $95,000 this week.
Let's imagine those who heavily invested in BTC at the beginning of 2023, with costs around $20,000; they are now seeing approximately five times the return.
In other words, buying 10 BTC in January 2023 would have cost about 1.4 million RMB; it is now worth about 8 million, yielding a profit of five to six million. In a small city with a house, a car, and no loans, this amount of money is considered wealth freedom.
So selling some is very normal.
When others sell, they've taken a big profit; what's the point of selling at a cost of 80,000 to over 90,000? Big capital is still buying and buying.
Bitcoin mining company MARA announced its latest progress and has once again increased its holdings by 703 BTC at an average price of $95,395.
Nasdaq-listed Bitcoin mining company BTC Digital announced plans to expand its mining facilities and capacity to meet the growing computational demand of the crypto market, and will explore business opportunities in Arkansas, Tennessee, Georgia, and Missouri.
In addition, BTC Digital has revealed that it is conducting due diligence on 'a location', which may lead to a potential acquisition that could support its mining capacity to reach 40MW by mid-2025.
The Bitcoin white paper was sent to every private student; how many have read it, and how many understood it? The white paper is a total of 3,200 words, while Bitcoin's market cap is now 15 trillion RMB.
This means that on average, each word of the Bitcoin white paper is worth about 4.5 billion RMB.
But guess what, has MicroStrategy understood this company well? I think they certainly have, and they have made things clear.
Many people still haven't understood, nor thought it through, and consequently have done even less to clarify things. This leads to a strange phenomenon where, many times, people do not reflect on their own learning abilities, but instead get caught up in regretting what they bought too little of, sold, missed out on, or regretted.
Life cannot be relived; if it could be, you think the opportunities you perceive would still exist when you have the ability to return to the past.
BTC has gone from nothing to something, from a price of $0.000028 to $100,000, with its origins in the white paper and every calculation by miners. The height of the blocks and the price of the coin are both rising steadily; do you think the miners have understood the white paper?
You should know that one of the groups that understand BTC the deepest is miners. Once the mining machines are on, it's not just about trading; if you want to buy, you buy, and if you want to sell, you sell – they are absolutely optimistic in the long run.
MicroStrategy bought another $5.4 billion worth of Bitcoin at an average price of $97,862. I don't know what you are afraid of!
Most long-term holders are waiting for higher prices. Comparing the current cycle to the 2015-2018 and 2018-2022 cycles, despite the vastly different market conditions, it can be seen that the magnitude and duration of rebounds are very consistent.
Several important pieces of information from history
1. Historically, bull markets from the current point usually last for 4 to 11 months, with room to grow.
2. In the last 30 days, over $62.9 billion in capital inflows has been generated through ETFs, enough to absorb 90% of the selling pressure on BTC.
3. Long-term holders holding up to 14 million bitcoins are all in profit, and holders are still expecting to sell at higher prices.
The market greed index has been above 90 for three consecutive days. I have already warned multiple times that a healthy correction at this small level is very necessary, so don’t panic.
A lot of new institutions are entering the market; these groups are basically buying and not selling, treating it as strategic reserves. In this case, the coins available for trading on exchanges will become fewer and fewer, as big capitals buy them and move them to cold wallets without moving them.
So even though it has already risen 130% this year, it is not the time to sell; this is not the big A. In the big A, if it rises 30%, you have to run; if you don't, it's common to be stuck for three to five years.
At this stage in the crypto space, please cherish every pullback in the current bull market; every pullback below $100,000 is an opportunity to add to your position, not to sell.
Walking with ink, preaching web3, I am Xi Mo, a guide committed to bringing you into the web3 industry, turning your main job into a side job, turning your side job into unemployment (wealth freedom), and letting assets appreciate after achieving wealth freedom is my goal that I pursue relentlessly and wholeheartedly.
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