Can You Handle $70,000 Bitcoin (Again)

Why did Bitcoin just pull right back under $100,000?

In fact, at the time of writing Bitcoin’s price just dipped under $99,000.

This is a sharp retrace from its most recent all-time high of $108,786 a week ago.

So, what’s going on? Is this the early signs of major pullback in Bitcoin? Are you to believe prominent ‘Bitcoiners’ like Arthur Hayes who says, ‘I am calling for a $70k to $75k correction in $BTC’.[1]

Can you handle a Bitcoin price back at $70,000?

Here’s the thing. If that happens, it’ll be ok. That’s because there’s one powerful mechanism in play right now that for me, locks in the long-term Bitcoin price up.

Down Sometimes is Up

$100,000 is a huge value for Bitcoin. Psychologically there’s something about that nice tidy round number that’s so appealing to the eye. Anything above that is pure bliss.

But $99,000… eww. That’s gross.

$80,000, I bet you’d be feeling sick.

$70,000, the hate, abuse, vitriol start flowing again as to why people ever invested in this Ponzi scheme that’s nothing but a currency for drug dealers and human traffickers.

However, any of those numbers (and those in-between) are just fine.

Perspective is needed. It’s only when you have the calmness and capacity in this market to deal with pullbacks like these, that you can be successful long term in Bitcoin and crypto.

Here’s some perspective.

This time last year, Bitcoin’s price was at… $42,000.

I’m not joking, check it out for yourself.

Only one year ago, we still hadn’t even beaten the previous all-time high set in 2021. That’s how far back the market has come in the last year.

A huge part of that has been the incredible demand and supply imbalance in the market. It was only this time last year that Bitcoin ETFs in American launched and started buying Bitcoin.

It was only this time last year that MicroStrategy was ramping up their Bitcoin buys, leveraging debt and equity to build themselves a Bitcoin bank.

Heck, in January 2024 President Trump likely hadn’t even thought of making all remaining Bitcoin, ‘made in U.S.A.’

A year in crypto and Bitcoin is a long time. It’s so easy to get swept up in the talking heads on social media. But if the price is swinging wildly, just step back and see the market for what it is…

A long-term wealth creation opportunity.

It’s Always Been a Demand and Supply Story

Has the demand and supply imbalance changed? No. You’ll find reports that on January 22^nd , BlackRock bought $662 million in Bitcoin for its ETF.[2] And we all know there was no increase to the 21 million supply of Bitcoin on that day to accommodate the buying.

You’ll also find there has been no derailment of plans for the U.S. to create a Bitcoin strategic reserve (although those pesky talking heads on social media will have you believe otherwise).

It’s said up to 15 states[3] are looking at Bitcoin and crypto reserves now too – with major players like MARA Holdings (the biggest miner in the US) pushing towards getting all 50 states to have a Bitcoin strategic reserve.

This is a demand supply story, always has been. Demand is continuing to increase, supply will never change. So long as the demand holds up, and there’s no indication that’s going to happen any time soon, then my expectation is price will follow.

Of course there will be pullbacks. And what we’ve seen recently is nothing really. The swing from $108,000 to $99,000 is just over 8%. Ha. A real pullback would be 30% down to $75,600. We’ve seen that in previous cycles and may well see it again.

But that’s ok. It’s how the Bitcoin price moves in mega bull markets, higher. And with demand still far outstripping supply, and some perspective, the long-term view for Bitcoin’s price is still up.

Trust in crypto,
Adam Atlantic

[1] https://x.com/CryptoHayes/status/1883682137897099624

[2] https://x.com/BitcoinMagazine/status/1881993634146570625

[3] https://x.com/Dennis_Porter_/status/1883345343489966189