Bitcoin: sideways movement = good for long term sustainability
While never ending growth is nice, it is not sustainable – here’s why.
PRICE BUILT ON MARGIN: Bitcoin’s recent incredible bullrun to 50,000 has been great for the entire crypto markets. However, with great momentum comes momentum trading. Many investors in the bitcoin market have been borrowing money to increase their holdings. Margin and leverage trading are available on most trading platforms and while that is good in the short term, it can lead to wild price swings once the momentum ends.
SIDEWAYS = GOOD?: Yes. A temporary flatline in price is the best thing for the long term value of bitcoin. A flatline in value will reduce the risk of investor over extending themselves on their investments.
TAKE A BREATHER – Right now the crypto markets are weather the recent increase in bond yields incredibly well. If investors can HODL while deleveraging their position, continued growth is a sure thing.
submitted by /u/DanghisKhan69