Bitcoin has lately been hogging all the spotlight in the media, now reaching close to $19,000 in value. There doesn’t seem to be any signs of slowing down now that PayPal is offering its services and big companies are now seeing the potential of crypto and investing millions into it. Even Billionaires want a piece of the action. This is all driving the price sky high leading us Muggles to instantly obsess about buying a coin. The price is starting to get a bit harder to obtain and many are beginning to experience the dreaded FOMO. For those not as hip, that is the fear of missing out. We see the coin jumping in value, the total number of coins available becoming smaller and smaller and now we want one before it’s too late.
I would be lying if I said I didn’t have FOMO. As I’ve mentioned in previous post, I’m obsessed with cryptocurrency, but I’m about to put a large down payment on my first home and investing $20k into Bitcoin is just not realistic at this time. However, that doesn’t mean I think I missed the train and think it will become out of reach. In fact, I am optimistic there is a price correction in its near future that will see prices back to Earth, temporarily giving us a small window to jump in before Bitcoin’s wild ride to the moon.
The Great Price Correction
What is a price correction you may ask and when will it be coming? Well, according to the very random strangers I found on YouTube, a price correction will happen “soon.” A price correction is a pullback of a certain percentage to adjust for overvaluation. The timeline is uncertain, but many are convinced it will happen sooner rather than later.
But why would a price correction be happening now? The price is just sailing on ahead. There were certain estimates given to the future of Bitcoin pricing. While they were optimistic, many caught on to it’s positive growth and began overcrowding the market. Large companies and rich guys all wanted a piece of the action and jumped in, buying up lots and lots of Bitcoin. That caused a huge media storm and got the attention of countless others running to buy before it got too expensive.
How much of a pullback are we talking? Again, no one is certain, but looking at historical data of Bitcoin, that estimate would look close to the $12k – $14k mark. That is a big dive which may be scary to some, but is absolutely a strong move for the future of Bitcoin.
My Plan to Buy Crypto
I’m still a month or so away from purchasing a Bitcoin, but I’m looking forward to jumping in. I have no reason to believe the price correction will happen when I’m ready to buy, but I’m currently hoping it doesn’t become too unattainable by the time I’m ready to buy.
More and more analysts are coming out with comprehensive predictions on the price of Bitcoin, all being rather generous with their projections. From CITI Bank projected over $300k by December 2021, to others reaching out to a million dollars. Everyone is very bullish on its future and I’m all for it.
While I’m not certain the price will really reach $300 within a year, I won’t be upset if it does, especially if I have a coin by then. The evidence is very compelling in their estimates for such high numbers and it really makes sense. The over inflation of the US dollar, our economy becoming a questionable thing and the attention Bitcoin is getting from the media. All factors playing into a bullish price movement.
My plan is to go in for the initial purchase of a Bitcoin, followed by monthly contributions to purchasing crypto. I’m planning to diversify a bit with the equally bullish Ethereum, sprinkled with other Alt coins such as Cardano, Tether, XRP and Polka Dot.
Final Thoughts
Bitcoin has been soaring the past few weeks, reaching prices not seen since 2017 with no signs of slowing down. A price correction is overdue, however the timeline is foggy and no one knows how much of a correction we will see. In the meantime, I am slowly trickling in a few hundred bucks into my account just to feed some of my FOMO.
For those worried they missed the opportunity to invest in Bitcoin, do not worry. First, you don’t need to own an entire coin. The price is being estimated to jump to crazy numbers, so just owning a small piece of the pie will set you up. Sure, you may never see the price points of under $10k again, but many will say they will never see the price point of $20k ever again either. Jump in when you can and hold that coin until we reach the moon.
I’m not a financial advisor, just an enthusiast of crypto and excited for it’s future. Please do your own research before investing in cryptocurrency.
