$30K Monthly Close
Bitcoin has a monthly close above $30,000 for the first time in more than a year.
$30K Monthly Close
Bitcoin closed the month above $30,000 for the first time in more than a year. It’s been a slow, albeit rocky, climb back to current levels, complete with twists and turns thanks to the likes of Terra, FTX, and the dreaded “inflation” word. External events aside, let’s focus on bitcoin and its historical price action.
The Last Year
Bitcoin’s +60% since this time last year.
Since Jan. 2021
Bitcoin didn’t fall below $30,000 from January 2021 to June 2022. That drop below $30k in May of last year was precipitated by the $40 billion collapse of Terra, a crypto project that is now known to have been at best, hopium, and, at worst, an outright scam. As investor money around the Terra ecosystem disappeared in May 2022, crypto markets broadly suffered.
We soon learned that Terra was just the first domino to fall. One by one, crypto-focused funds and centralized exchanges and platforms revealed themselves to be insolvent, having irresponsibly invested in Terra and other high risk gambles, with many using customer funds to do so.
Last year at this time was a sobering reminder to newcomers and veteran investors alike that bitcoin is different than everything else in “crypto.” And while bitcoin might’ve had more room to run in a bull market that lasted a year and a half, it largely did what it’s always done... Bitcoin dominance, its share of the total cryptocurrency market, shot up toward 50%.
When markets get rocky, investors who chase gains in highly speculative projects return to bitcoin as a safe haven and bitcoin dominance rises.
Right now, bitcoin dominance is back above 50%. When markets pump, investors add to their bitcoin allocations not wanting to miss out. Markets go down… Bitcoin dominance goes up. Markets go up… Bitcoin dominance goes up. That’s the trend.
Bitcoin operates around a four-year even called the halving. Roughly every four years, the amount of bitcoin released into circulation gets cut in half.
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2nd to 3rd Halving
There have been three bitcoin halvings to date. This is the price of bitcoin between the second and third halvings: Jul. 2016 and May 2020.
1st to 2nd Halving
Trading markets weren’t fully developed until 2013-2014. This is the price of bitcoin between the first and second halvings: Nov. 2012 and Jul. 2016. We’re less than 10 months away from the fourth bitcoin halving. That means a few things that are worth paying attention to. Three things to focus on first are:
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