The Kale Letter
The Kale Letter
Why is Bitcoin CRASHING?
0:00
Current time: 0:00 / Total time: -4:56
-4:56

Why is Bitcoin CRASHING?

PANIC? PANIC? PANIC SOME MORE??

Hey everyone!

I was going to write about CONTROLLING YOUR PATH (making your ENVIRONMENT more suitable to achieving your goals…)

But, then Bitcoin crashed 10% down to $51,000 and I got 500 texts….

SO…..

If you wanna hear about actually achieving your goals by “cheating”, make sure you’re subscribed, I’ll send that out tomorrow barring any other crazy events.

So why did Bitcoin “crash?”

Honestly, who knows…

“BUT KALE I WANT TO KNOW WHY THAT’S THE ONLY REASON I OPENED THIS EMAIL!”

Honestly, I don’t care why, and you shouldn’t either.

Bitcoin does this.

It simply is part of the process.

Let me just refer you to a little chart.

This is from 2017, back when Bitcoin was exploding in price, just like it is now…

It’s almost like it’s on a 4 year cycle or something… :)

So yes, you can breathe a big sigh of relief.

This is NORMAL.

Notice… that if you had SOLD where ANY of those RED ARROWS are pointing in the above chart…

YOU WOULD BE VERY VERY VERY SAD.

Notice, part 2….

That even if you hadn’t sold….

And it “crashed for good”…

At the top in 2017…

ALL YOU WOULD HAVE HAD TO DO IS HOLD YOUR COINS, and now you’d be up a massive amount….

Easier said than done, I know…

Want more information that should ease your mind?

1) This dip is being bought by freaking MONSTERS.

See this chart from my favorite analyst, Willy Woo?

The RED BARS represent when STRONG BUYERS come in, buy coins, and MOVE THEM OFF THE EXCHANGES.

This is important.

If the coins go off the exchanges, it’s kind of like moving your Gold Bars from the COUNTER OF THE PAWN STORE, into A DEEP VAULT 1,000 FEET BELOW SEA LEVEL.

Basically, those coins are being bought by BIG DOGS who don’t care about short term price movements, who aren’t going to sell anytime soon.

Imagine there are 2 people.

One is a normal person, like you and me.

They see Bitcoin crashing, and think of all the things they could have bought with that extra $7,000 when Bitcoin was $58,000 a few hours ago…

They start to panic…

Their wife starts yelling that she’s never going to get that Louis bag…

And they sell.

Then there’s the other guy.

The other guy isn’t even a person.

It’s a hedge fund.

Or a fortune 500 company.

Someone who spends $25,000 on a “executive lunch” and doesn’t even blink an eyebrow.

Someone who flies in a Gulfstream when he could have just jumped in his Rolls Royce and driven there….

You get the idea?

THAT DUDE IS WHO IS BUYING BITCOIN RIGHT NOW.

It’s much harder to figure out why anyone would want to SELL to that dude…

But that’s what’s happening.

He’s casually wiping the caviar off his fingers and storing his Bitcoin in an underground vault, never to be seen again…

Do you really want to sell your precious coins to that guy?

One more reason, and this one is super obvious.

Stocks and Bitcoin alike aren’t doing so hot right now…

Why is that?

Because things are UNCERTAIN.

(markets HATE uncertainty)

Why are they uncertain?

  • Vaccines are performing better than expected

  • Vaccines are getting distributed far and wide

  • The World is UNSURE how fast things will return to normal, and how people will spend their money.

Here’s the thing though…

IT DOESN’T MATTER.

Here’s what hasn’t changed, and why I still think Bitcoin is headed to $100k-$250k this year…

1) The governments of the World are in debt up to their eyeballs. The ONLY way to prevent a global economy collapse is to PRINT MONEY. This is rocket fuel for Bitcoin.

2) Institutions and COUNTRIES are COMING.

All you have to do is get on twitter.

There are dozens if not hundreds of institutions and even COUNTRIES rumored to be in the process of buying Bitcoin.

Remember, these companies take a long time to move, but when they do move, they buy BILLIONS.

3) There’s STILL only 21 Million Bitcoin.

Regardless of what happens. You can’t print this stuff. In a World of insane printing, the scarcest asset will win. Period.

4) Stock to Flow is right on track.

Do you think that financial advisors, hedge funds, institutions, and billionaires don’t know how to use a calculator?

This model has predicted the price of Bitcoin to 95%+ accuracy to date, and predicts a $100k-$288k price point this year. (oh, and $1,000,000 by 2025)

Once we hit 100k, are all these people going to forget how to calculate expected returns?

I don’t think so.

To all the people texting me, CALM DOWN, ZOOM OUT.

See you subscribers tomorrow.

Kale

Discussion about this podcast

The Kale Letter
The Kale Letter
Private Feed - The Kale Letter
Listen on
Substack App
RSS Feed
Appears in episode
Kale Abrahamson