When the market fluctuates, it's time for us to calm down and gain the necessary knowledge to better understand the assets we hold, the investment portfolio we're managing, and the emotions we need to control!🧘 ♀️
Have a good read and wish you all a good afternoon with more time with family and friends! 💪
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Bitcoin's journey has been full of fluctuations. The price of this cryptocurrency often reacts to political, economic developments and legal regulations.
Bitcoin has experienced an average growth of 200% per year. As of August 2021, Bitcoin's market capitalization is approximately $710,000,000,000, dominating nearly 50% of the cryptocurrency market.
Events such as the hack of the Mt. Gox in 2014 and the stock market crash of 2020 may explain some of Bitcoin's short- and medium-term price behavior. In the long term, you can have a more macro view of Bitcoin when looking at its price using technical analysis models, fundamental analysis, and market psychology.
For technical analysis, Bitcoin's Logarithmic growth curve and Superwave Theory are two notable models. Superwave theory ties prices to investor psychology during cyclical periods. When it comes to fundamental analysis, the Stock to Flow and Metcalfe models have been quite accurate in their assessments of Bitcoin. Finally, you can use a combination of all these methods to get a multi-faceted view of price history.
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