The knife is falling, and trying to catch it with your hands is a predictable tragedy.
The above is an undeniable truth: those famous bitcoin cycles dominate the cryptocurrency market in general. However, there are still investors, or rather speculators, willing to blow up their investment portfolio for a speculative asset.
It is no secret that bitcoin behaves like a software stock, as I explain in my book entitled ‘El Derecho de las Criptomonedas’ (The Law of Cryptocurrencies), published by Grupo Editorial Ibáñez in Colombia. This means that although I have an affinity for cryptocurrencies, I am not a maximalist, and I do not buy cryptocurrencies for philosophical reasons.
Unless someone buys bitcoin for less than ten thousand dollars, it ceases to make sense as a ‘safe haven asset’ and becomes a highly volatile speculative asset. This is evident, since buying at even higher levels in the hope of getting rich is simply illusory. Ideally, we should allow the real deep cycle correction to end, which could mean waiting several months until approximately November 2026. This also means not buying altcoins during this period.
Buying now means donating liquidity for the next ten per cent rebound in price, ensuring that someone eager to sell has a margin to amortise or average out their losses. Investing in cryptocurrencies could definitely give you a heart attack if you don’t understand them. And it wouldn’t be outrageous to take out good medical insurance against heart attacks if you’re involved in shitcoins with doggy covers.
Today, any sane investor knows that if bitcoin falls, everything else sinks with it; it is the barometer of the cryptocurrency market. Now, the new trend is still going strong, and it’s called Artificial Intelligence. I have no doubt that it has and will continue to have important real-life applications in the future, but for now, it’s imperative to exercise restraint and not bet your retirement on an android making dinner at home next Friday.
Dear reader, let Bitcoin correct itself deeply, with an ‘L’ or ‘V’ recovery, but do not pick up a knife that could cut your fingers or even pierce your heart. Do not believe in ‘siren songs’ because, in the end, when the melody ends, there will only be a shipwreck and a crater that will inflate your trusted broker’s commissions.
Because why do we need to average if we can expect a relatively predictable market bottom every four years in bitcoin?
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