So, Bitcoin reached its all-time high value – now what?

With Bitcoin recently reaching its highest value ever the news has made waves far beyond the crypto even catching the attention of the members of the general public. In fact, many of them, unfamiliar with the ways of the cryptosphere began panic buying it in hopes of financial benefits. I’m afraid, however, that it will once again end up adding to the general public’s skepticism towards cryptocurrencies when they do not get what they expect. After all, there are still many people who believe that cryptocurrencies work like traditional fiat currencies and are therefore susceptible to the same bubble effect.

But before we go any further, let me introduce myself to my first-time readers - I’m Giorgi Shonia, the CEO of Nordom, an upcoming smooth user experience-oriented crypto exchange. To learn more about crypto and my project in particular, don’t miss out on our updates and visit us again.

The reality, of course, is that while it may appear like a typical financial phenomenon, it has its own rules - and its own patterns. For example, unlike traditional financial systems, the crypto ecosystem is significantly influenced by psychological factors like FOMO (fear of missing out), which often drives market behavior. This was once again the case when Bitcoin soared past $93K, triggering a bull run season. And nothing is triggered more by FOMO than a bull run season. 

In reality, these people are acquiring Bitcoin as part of a “pump” tactic, though as experienced investors know it is logical that at some point, the prices will go down. That is when a lot of those who bought Bitcoin without understanding the necessary understanding of the crypto market will claim it as evidence for crypto being a scam.

But for seasoned investors in the cryptocurrency market, it is the absolute opposite of the standard strategic behavior: the golden rule is to buy during the “dump” period, and sell during the “pump”. Yet for some reason, people still feel psychologically compelled to act the other way around. 

Of course one of the many reasons why the above-mentioned golden rule works is because it overlaps with one of the most tested strategies in crypto - and that’s HODL. It is always best to think of long-term investment strategies since Bitcoin is an investment that will always eventually start growing in price in the long term, so why not wait until it’s all quiet again when you can buy - and hold it until better times?