Over the past few hours, BTC's value dropped from around $360 to $318 and still dropping.
What do you think the cause is? Do you think its going to keep dropping or is it yet to boom and why?
Just curious and wondering what the community thinks.
The long term trend is strongly up.
We fell below the long term trend line by staying relatively stable for several months after the April crash. There was good press starting about 5 weeks ago, and once it started going up, speculation drove it up too fast. Speculators trade on momentum and therefore tend to overreact and cause large price swings.
Now we've had a nice little correction and seem to have entered a period of consolidation, moving sideways for a while. I think this correction is over, and we probably won't see much more downward movement soon.
I would like to see some sideways movement or slow increase to establish a nice base, but I'm guessing we will probably see a sharp rise instead. The Monday U.S. banking holiday might delay that, since new investment dollars cannot move from U.S. bank accounts until Tuesday.
The sharper the rise, the bigger the correction, so I would like to see a more sustainable growth rate.
Because of the volatility, you would think you could make a lot of money by short-term trading in Bitcoin. However, that requires being in fiat much of the time, which means you tend to miss the big run ups like those of the past few days. "Buy and hold" turns out to work much better.
I suggest investing 1% of your net worth in Bitcoin, then holding no matter what happens. If the trend continues, it will be worth 7X in 1 year, 50X in 2 years, 350X in 3 years, 2400X in 4 years, etc.
