How to deal with the bear market 🐻
💡 Daily Reminder: Stay humble, stack sats
Bitcoiners,
Are you second-guessing your investments in bitcoin during the bear market?
Everyone struggles with not selling bitcoin during the bear market.
Personally, I experienced that feeling before. When I first bought bitcoin in 2017, I saw my investment accrue value like none other. Quickly, the market flipped and the price of bitcoin dropped more than 80% from the highs. My faith in Bitcoin dropped and I was almost ready to sell.
But what changed for me was the realization that bitcoin is a long-term investment, meaning I have to wait years before I start judging the performance. And as soon as that clicked, I started to understand that overcoming the feeling of wanting to sell wasn't that hard—I was just looking at the performance of the asset over the wrong time horizon.
Here's what I should have done instead:
Zoom Out
A useful time horizon to view bitcoin's price action is 4+ years.
A helpful website for analyzing the price of bitcoin vs other assets is Strategy.com. Viewing bitcoin over a 5-year period shows it outperforms nearly every asset class listed. The growth of bitcoin's price over longer time horizons cannot be denied.
Zoom out and realize the price of bitcoin was $5,750 exactly 5 years ago.
I can only imagine where the price will be in 5 years from now in 2027. My guess is $100k as a floor price, peaking much higher at some point during the next price run-up. If you are thinking about selling, I suggest you change your time horizon and HODL through this bear market.
Happy Sunday,
-Pod
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Eric Podwojski
Founder, Bitcoin EDU
Twitter: @epodrulz
Disclaimer: This should go without saying: This is not financial advice. This is not investment advice. I write this newsletter for education and entertainment. Act accordingly.