Acclimatization

Happy Bitcoin Friday! — Dec. 6, 2024

Acclimatization

$100k Bitcoin

The price of bitcoin first touched $100,000 in late November. I wrote about it here.

This week, however, it convincingly broke $100,000 on all global exchanges, going as high as $104,000 in some instances.

In today’s Bitcoin Binge:

• price discovery

• acclimatization

• new/old podcast

• bull market mentality

• bitcoin security

$100k means price discovery.

I spoke about this last month when bitcoin first started testing new all-time highs but we have to reiterate what price discovery means above $100k.

$73,000 represented the prior resistance level. Bitcoin traded within a 10-12% range of $60,000 for the better part of 2024 until the second week of November when it broke above the prior inflation adjusted all-time high near $73,000-74,000.

Since then, we’ve witnessed all-time high after all-time high as bitcoin enters another round of price discovery mode while ushering in this market cycle’s bull run.

In today’s world, and especially in bitcoin, people are quick to adapt. They’re quick to adapt to everything—the news cycle, the stock market, life events, etc. They may not like what’s changed, but they are able to accept the new reality.

I’m talking about acclimatization.

When mountaineers climb towards a summit at high altitudes, they must acclimatize. They pause and let their bodies adjust to the environment at various checkpoints on both the way up and the way down the mountain.

Side note—in our house, we just finished watching The Summit, a new reality show that mixes climbing a mountain with voting people out of your group.

Right now, bitcoiners are getting used to $100,000. We got very comfortable with $60,000 all year long and then rocketed up to current levels.

Because $100k is the largest psychological level we’ve ever witnessed and because people need to get used to things, it’s going to take a few times to break above it with conviction and hold higher for longer.

But, as we’ve said, people are quick to adapt. So, while we’re in a period of acclimatization, getting used to $100k, that number will become more normal to bitcoiners and non-bitcoiners alike in short order.

What Bitcoin Did

What Bitcoin Did, a podcast, is back!

Danny Knowles was the producer of what was previously the biggest bitcoin podcast, What Bitcoin Did. He’s revitalized the show as its new host and the first episode is a great listen for anyone experiencing their first bitcoin bull market.

Here’s the Spotify link or search for it on any podcast platform. Danny and bitcoin analyst “Checkmate” dive into what $100k means, what stands between $100k and $200k, current retail and institutional interest, MicroStrategy’s bitcoin strategy, and where we go from here in this market cycle.

I won’t lay out price predictions in price discovery territory but it’s important to put this market cycle in the context of prior cycles. Even when it feels as though we’re in a parabolic period, there will be periods of up and sideways or down if you look closer.

Revisit this post from 2022 for more on how bitcoin market cycles work. I even speculate some about the current cycle we’re in which is kind of fun to look back at.

My Mentality

What’s my bull market mentality?