$BTC The price of $100K per Bitcoin may seem like a lot, but it could be considered “low” in terms of the long-term potential of the asset for a few reasons:

🚫Limited Supply: Bitcoin has a fixed supply of 21 million coins, making it deflationary. As demand grows and supply is limited, the price could continue to rise as fewer Bitcoins are available to mine each year.

Fiat Inflation: With fiat currencies like the US dollar increasingly inflating, Bitcoin is becoming increasingly attractive as a “store of value.” The increase in the fiat money supply could make Bitcoin’s value higher against national currencies.

Institutional Adoption: Increasing adoption of Bitcoin by large financial institutions and corporations (e.g. Tesla, MicroStrategy) could drive up its price. The more institutional acceptance, the more Bitcoin could become a widely recognized store of value.

🆙Future Demand Growth: As societies become more comfortable with cryptocurrencies and blockchain technologies continue to advance, demand for Bitcoin could increase, leading to further increases in its price.

Future Potential: Many believe that Bitcoin could serve as a global reserve currency or means of payment, which could eventually drive its price into the millions of dollars per unit. In this context, a price of $100,000 may seem small compared to its potential value over the long term.

In summary, a price of $100,000 per Bitcoin could be considered “low” in the context of long-term market forecasts and trends, especially when considering the limited supply, increasing adoption, and inflationary forces on traditional currencies.

In January 2023, the $BTC Bitcoin rate showed significant volatility

January 1, 2023: Closing price was $16,625.52.

January 14, 2023: Bitcoin exceeded $21,000.

January 31, 2023: Closing price was $23,128.94.

$BTC

$BTC just do DCA

$BTC often shows growth in the first months of the year, which is sometimes called the "January effect". However, this is not a rule and depends on many factors, such as:

🐂General trend of the cryptocurrency market: A growing market (so-called bull market) favors growth in January, while in a falling market (bear market) BTC can fall or remain stable.

🆕Inflow of new investors: The beginning of the year is often associated with an inflow of capital from new investors, which can increase demand.

🏦Macroeconomic data: Inflation, interest rates or actions of central banks affect the perception of Bitcoin as an asset.

🔁Seasonality and market cycles: In the past, Bitcoin has had strong growth in January in years after halving (reduction of the reward for mining a block).

Examples from recent years:

2021: Bitcoin started the year around $29,000 and reached over $40,000 in January.

2023: Bitcoin rose from around $16,500 to over $23,000 in January, one of the largest gains in a single month.

#BtcNewHolder

Volume imbalance is the difference between buying and selling volume at a given time in a financial market. It refers to a situation where the number of buying orders (buy volume) and selling orders (sell volume) is unequal, which can indicate that one side of the market is in favor. For example, more buying volume than selling volume suggests demand pressure that could lead to higher prices, while more selling volume could signal falling prices. Volume imbalance is often used in technical analysis to identify potential turning points, trends, or the strength of a current price movement.

It is estimated that around 6 million Bitcoins have been lost forever ❗️
Which is around 31% of the total supply of the cryptocurrency.

In March 2023, Timothy Peterson, a manager at Cane Island Alternative Advisors, estimated that the number of Bitcoins lost exceeded 6 million, which is over 31% of the current supply of BTC.

In July 2023, analytics platform IntoTheBlock reported that around 29% of Bitcoins had not been moved from addresses for over 5 years, suggesting that some of them may have been lost forever.

However, it should be noted that some of these Bitcoins may be held by long-term investors who do not plan to sell them anytime soon.

Due to Bitcoin's limited supply, the loss of a significant number of coins could impact its market value, leading to a rise in price as it approaches its maximum supply of 21 million BTC.#btc

Fear and Greed index

The index scale measures the level of "fear" (Fear) and "greed" (Greed) in the market.
Fear occurs during periods of high volatility, uncertainty and fear of price drops.
Greed is the dominant emotion during periods of rising prices, where investors are more willing to take risks.

Fear and Greed Index scale:

😱0 – 24: Fear
High fear of price drops, high volatility, undervaluation of assets.
😐25 – 49: Neutrality
No clear emotions, investors are waiting for the market direction.
😲50 – 74: Greed
Increased interest, self-confidence, higher prices.
👹75 – 100: Extreme greed
High optimism, possible risk of a speculative bubble.

High fear can signal buying opportunities at lows.

High greed can warn of an overheated market and the possibility of a correction or decline.

Traders can use it as an additional tool to confirm their strategy.

It can help avoid “buying high” or “selling low.”

How Much Should You Invest in Cryptocurrencies?

☂️Amounts You Can Afford to Lose – Since the cryptocurrency market is highly volatile, invest only as much as you can afford to lose without affecting your daily life and financial stability. Many people suggest not investing more than 5-10% of your total investment portfolio in cryptocurrencies.

👛Portfolio Diversification – Even in the case of cryptocurrencies, it is worth diversifying your investments. Instead of investing all your funds in one cryptocurrency, consider splitting your investment between different projects to reduce risk.

🤏Investing Small Amounts to Start With – If you are new to cryptocurrency, consider investing smaller amounts. You can start with a few hundred to a few thousand złoty, depending on your financial situation.

🗓️Long-Term Strategy – If you treat cryptocurrencies as a long-term investment (hodl), you may consider investing larger amounts, but at the same time apply risk management principles, such as investing in installments (dollar-cost averaging).

🛝Be prepared for large fluctuations – Given the high volatility of the cryptocurrency market, it is a good idea to be prepared for large fluctuations in the value of your investment. Therefore, it is recommended to approach the amount of your investment carefully, as well as to ensure adequate financial liquidity in case you need to sell quickly.

The pillars of investing are the basic principles and approaches that form the foundation of a successful investment strategy. While different people may point to different pillars, there are a few that are commonly considered key:

🖖Diversification – spreading your investments across different assets (e.g. stocks, bonds, real estate) to minimize risk. Diversification reduces the likelihood that all of your investments will suffer losses at the same time.

🔜Long-term approach – investing with the future in mind, avoiding short-term speculation. Long-term investments, such as stocks or real estate, have greater growth potential and minimize the impact of market fluctuations.

🔎Risk and reward assessment – ​​every investment carries a certain level of risk. It’s worth understanding these and choosing the right investments based on your risk tolerance and return expectations.

💵Reinvesting your profits – reinvesting your profits regularly allows you to take advantage of the snowball effect, allowing your investments to grow faster because they generate higher returns.

😌Control emotions – making investment decisions based on rational analysis, not emotions. Fear and greed can lead to hasty decisions that are often unfavorable.

🔁Regularity and systematicity – investing regularly, even with small amounts, allows you to use the dollar-cost averaging mechanism, which reduces the risk of catching an investment at the wrong time.

📖Research and education – success in investing requires continuous expansion of knowledge about markets, investment strategies, and financial tools.

Understanding these pillars and applying them in practice can help build a solid foundation for long-term investment success.#