Quite a few Members have messaged today asking if I’m worried about the price dip in Bitcoin today.
The short answer is: Absolutely not. In any way. Whatsoever!
This is completely normal “price action” for Bitcoin.
In fact I actually get a bit excited when there is a price correction in Bitcoin, because it allows me to buy more at a cheap price.
And indeed just after I woke up this morning I did just that!
What caused the “dump”?
As I understand, SpaceX, the company run by Elon Musk sold around $400M worth of Bitcoin, which caused the price to dip.
Some people criticize large holders of Bitcoin when they do this. But the way I see it is that its their money and they can do whatever they like with it!
I would imagine that they needed the capital to build a rocket or something.
Anyway, when there is a dip in the price caused by a large holder selling Bitcoin, there is a cascade effect of gamblers…sorry, I mean “traders” who get liquidated on their trades.
They use leverage to go “long” or “short” on the Bitcoin price.
If a lot of traders are “long” (i.e. betting that the Bitcoin price will rise in the short term) and the price dips (because of a large holder selling), they get a margin call and have to sell actual real Bitcoin to cover the margin call. This further adds selling pressure, and so further reduces the price until the leverage is “flushed out”.
Anyway, whether you understood what I just wrote or not, its really irrelevant to us.
We are investing in the actual asset itself (Bitcoin) rather than betting on…sorry, “trading” the price fluctuations.
I explain why price volatility is a GOOD thing and why in fact its 100% necessary in the new Member Report.
- Get your copy here
(has a 50% launch discount until 12:00 today)
All the best,