Monday's Market Outlook #2
"If you don't bet, you cant win. If you don't have money, you can't bet."
- Larry Hilt
What a wild weekend. If you survived, congratulations, that is the most important thing you can do. You can't win in this market with no money, and the name of the game is to survive.
The ones who are patient will win.
A Bear Winter? Not really.
Over the weekend we saw Bitcoin's recent rally above $60,000 collapse, posting a $10,000 drawdown in a span of hours, hitting its floor of around $52,000.
Sirens went off as new and veteran speculators alike shouted "Bear Winter!" from every corner of the internet, everyone scrambling to figure out what the hell just happened.
So what did just happen?
To explain the phenomenon that took place over the weekend we need to explain two very important things:
- Hash Rate
The Bitcoin hash rate is the amount of computing power in the Bitcoin network working towards solving block puzzles and processing transactions.
The Bitcoin hash rate has been studied in-depth by speculators and researchers alike as the asset continues to obtain global adoption. It is important to understand the dynamics and economics around Bitcoin in order for financial institutions to make complete due-diligent investments.
As it stands, there are two main groups, the price-follows-hash (PFH) group and the hash-follows-price (HFP) group.
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