The Long, Enduring, Sideways Bitcoin Crawl

Photo by Cade Prior from Pexels

It’s been about a month since the price of Bitcoin pretty much straddled the $35k and $30k USD price marks. For a little over two month’s this slow, enduring sideways crawl remains closely in line with $30k to $39k. It’s been the most sustained such chart move since the beginning of the year.

Where might this lead? And, what action(s) is prudent?

Both of these questions are of course speculative. Still, examining past Bitcoin (and crypto market behavior) is worthwhile. To maintain a focus, the purpose here will merely be to explore the two questions above.

It’s quite the challenge, and possibly not all that significant, to make judgments based on the BTC price prior to 2017. Some factors why only the past few years should be considered here:

• Larger market
• Investing infrastructure (e.g. crypto pools, baskets, and mutual fund)
• A mature market overall
• Established smart contracts
• Cross chain bridges
• NFTs

Modern Crypto Market

Being much larger, the modern crypto market exhibits clearly different behavior than before 2017. Up until this point, Bitcoin was just getting started and even Ethereum had little impact in its pricing.

Imposing Traditional Investing Infrastructure

Probably the most direct effect upon daily price behavior are investor pools. Most traditional investors seemingly fear crypto volatility. In contrast, those operating within the industry would likely describe volatility as a healthy balancing. Alas, cryptocurrencies (even Bitcoin) are popularly seen for their value to the USD (and other fiat) and not their capacity to grow and operate their independent blockchains.

A Mature Crypto Market

Blockchain developers are wise to the short-term, tentative tactics employed by some traditional market investors. Many only seek to pull out a quick buck. Thus, Bitcoin’s early excitement has transformed into a game of steady development.

Established Smart Contracts

Price stability was an invariable consequence once key smart contracts found widespread use.

Cross-chain Bridges

Instead of moving value from one blockchain to another by going through a fiat toll, cross-chain bridges allow for value to freely flow where needed without impacting fiat prices.

NFTs

Probably the strongest, pure volatility factor, NFTs infuse life into the core of the crypto market. NFTs are about individuals trading amongst themselves. What may start out as airdrops often becomes a competition of collectables. Some NFTs are about stacking, and thus, exhibit very similar market characteristics to cryptocurrencies. For the most part though, NFTs are about distribution to, and trading across, the most interested members of an audience or community.

Concluding Thoughts

Taken together, these factors make for a more price resilient Bitcoin. That is, a Bitcoin price that will remain where it is devoid of added substance like a brilliant new innovation. Without NFTs, fiatists would likely continue to weigh down Bitcoin. However, in the same way that good art always appreciates within a successful society, NFTs infuse cryptomarkets, and for that matter, the world, with inherent value.

As for you, brothers, do not grow weary in doing good.

#ProjectHOPE



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