Bitcoin soars again on Amazon, Google news

How does that old Kenny Rogers song go?

“You got to know when to hold them, know when to fold them…” Continue reading

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Who will catch the falling knife that is bitcoin price?

September has been the cruelest month for bitcoin.

On the first of the month the price was $4,950. This morning’s low price was $3,036. Nearly a 40% decline over the first half of the month.

While many stories point to the Chinese crackdown on the cryptocurrencies through the exchanges and others give a nod to JPMorgan chief Jamie Dimon’s comments at the beginning of this week, I believe it has more to do with the newest investors in the crypto space.

The “investors” who came in at $3,000 and up — after finally learning how to buy a crypto — all they wanted to know after that was how to sell it. No buy and hold. Make a quick return and get out.

With that said, I could see bitcoin settling around this level as the shake out of newbies is completed. Remember no chart goes straight up from left to right.

If you recall earlier this summer, bitcoin had roughly a 34% drop in mid June, but by the middle of July put in a floor in at $1,995 and marched on to just below $5,000 from there.

You need a shake out in the markets — whether its stocks or cryptos — to set a floor to build on. The trouble is 40% down in two weeks is teetering on a panic and re-enforcing Dimon’s comments of it ending poorly.

However, the huge sell off on a percentage basis should not be directly compared to stocks since bitcoin does not have a Plunge Protection Team to come in and catch the falling knife when the market is experiencing panic selling.