You may have noticed that Bitcoin has been dropping slightly lately.
Right now we’re sitting around 31k, and the high a few weeks ago was 41k.
I just want to explain to you, with one chart, why it is EXTREMELY dumb to sell your Bitcoin now, and why I’m 100% confident Bitcoin is going much much higher throughout the rest of this year.
Boom.
One of the most bullish (bullish means good) charts I’ve ever seen.
Let me break it down for you.
See that faint squiggly white line? You may have to squint, sorry.
That line is the Bitcoin price over time..
Before this year, the previous all time high was in December 2017.
See that on the graph? Good.
Notice that there are GREEN BARS right after it?
Also notice that the PRICE (white line) dropped significantly as those green bars rose?
The same thing has happened MULTIPLE TIMES throughout the history of Bitcoin.
The red arrows in the chart above point right at these points in time.
So, what do the RED and GREEN bars mean, you ask?
Simple.
— RED = Liquid Bitcoin Supply DECREASING. This means that people who believe in Bitcoin are MOVING IT into COLD STORAGE (the gold equivalent of a VAULT 300 feet in the ground guarded by an army). People that are in the RED category DO NOT SELL. They are holding it long term.
— GREEN = Liquid Bitcoin Supply INCREASING. These are people who move their coins to an EXCHANGE, like Coinbase, Kraken, Gemini, etc.
These people are net SELLERS. They want to exchange their bitcoin for dollars or euros or whatever and cash out.
See, this is where it gets interesting.
Notice the FAR RIGHT of the graph?
That’s our present time, right here, right now, in 2021.
As you can see, the faint white line? It’s at ALL TIME HIGHS.
However, the RED BARS are ALSO at all time highs??
What does that mean??
Here’s my hypothesis, which I think has been confirmed over the past few weeks of price movement.
1) Bitcoin price went up over 300% this year. Lot’s of people got into it without knowing much about it. Now, seeing the price “crash” a little bit, they are selling in order to preserve some of their gains.
I pretty much know this is the case because I’ve had to talk MULTIPLE of my friends and family off the cliff lately. As soon as Bitcoin hit 40k, they were all texting me asking if they should sell. I get it. Seeing your money 3-10x over the course of a few months would make anyone pretty anxious about selling it and buying a car or something.
2) Those people who don’t fully understand Bitcoin are the ones that are SELLING IT right now.
3) The INSTITUTIONS are GOBBLING UP ALL OF THESE COINS and PLACING THEM IN COLD STORAGE.
Grayscale bought $700M+ worth of Bitcoin 3 days in a ROW this week.
Paypal buys hundreds of millions daily.
Square does the same.
Now, the world’s LARGEST asset manager, Blackrock, just released that they can now purchase it.
These institutions are the RED BARS on the graph.
These institutions are not “strapped for cash”.
Blackrock alone has $7.6 TRILLION DOLLARS under management. (that’s about 8% of GDP)
These “big dogs” are not worried about the price right now, and will likely never sell.
Those massive red bars are SCREAMING at us right now.
Don’t be that guy or gal who is uninformed, who sells their digital gold to the big hungry greedy corporation.
They will GLADY scoop up your coins and lock them away in a vault, never to see the light of day again.
This wouldn’t be a problem, if Bitcoin were like the US dollar, and the government could just easily print more to supply the demand.
There will NEVER be any more than 21 Million Bitcoin.
Never.
Once you sell to these “big dogs” those coins are gone.
Not to mention, when you sell, you have to pay 20-40% capital gains tax.
So good luck paying that tax, and being able to buy back your coins for 20-40% less than you sold them for.
More likely, this current cycle will shake out all the wusses (sorry, that’s what I told my dad he was when he considered selling haha)
And then the price will keep going up because there’s literally nowhere else for it to go.
No one else will be selling.
There’s not enough Bitcoin to go around.
I hope that made sense, let me know in the comments below.
And share this with anyone you know who might own Bitcoin. (you can just forward the email)
And tell them, from me, to stop being a wuss and hold their damn coins.
Kale
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And even if I do charge you a dime, it’s cheap as dirt.
Win win.
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