I was travelling in Europe in the past two weeks and constantly on the road. So I did not want to stretch myself too much by closely watching the market. Therefore a two weeks break for my blog. Now I'm back and trying to catch up. The stock market is fascinating that it reaches new highs almost every day. The bullish momentum is simply too strong at the moment. But there is something that is even more crazy that I'd like to comment now.
I'm talking about bitcoin or and other cryptos. As you may still remember, just a short while ago in less than 2 months, the sentiment for bitcoin was totally different and I could even called it abysmal like the end of world for it. At that time, the JP Morgan CEO Dimon openly called it a fraud and it would not survive for too long. China announced a total ban of it. Indeed it seemed bitcoin would crash and even disappear soon. You know I don't believe it at all and I even wrote a long blog to provide rationale why Dimon's fraud claim was laughable and why bitcoin would go much higher during its life. But to be very honest, even with my very strong belief in it, I thought it would probably take a year or two to reach new highs. Of course I was totally wrong. Just within 2 short months, the sentiment has drastically shifted towards a super bullish mood as I'm writing. Bitcoin is indeed making new highs every day in the past week or so and has reached its all time high at $9700. Suddenly it seems everyone is getting very excited about it and wants to get in. This is typically when a bubble is formed, although a temporary one. If you are also getting exciting and want to buy now, my best advice is NOT CHASING IT! I believe bitcoin may very soon top over the $10,000 mark, probably within a week or two. Dec 11 is a historical day for bitcoin as its first ever futures will be available for trading. This is likely one of the major catalysts that pump up bitcoin right now. But we may very well see "Buy the rumor and sell the news" phenomenon. I think the chance is very high that after bitcoin breaks out over $10K, and then a rather severe correction may follow. It is generally a loser's game to follow the herds, either chasing up or down for anything. No difference for bitcoin!
For myself, I'm certainly happy to see bitcoin or other cryptos make new highs constantly but I'm not naïve enough to believe the uptrend will simply continue without breaths. I'm even hoping bitcoin can be cut in half to shake out weak hands and allow me to buy more. For now I'm just holding my coins and at the same time also enjoy accumulating my coins via the digital renting business I've got in. It is a great feeling to know that every hour my cryptocoins are getting more without me doing anything. It is a very slow process of course but over a long run, it could become a phenomenal asset for me if bitcoin and the cryptos become the mainstream technology just like what the Internet is for our lives now.
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