Price drops don't mean much if fundamentals are solid

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CyberFoxMember
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#1Jul 25, 2022, 05:23 AM
Just looking at the price doesn’t tell the whole story about bitcoin. We really need to consider key factors like how miners react to a dip, what developers are doing, if bitcoin's security is still strong, and whether adoption is still on track. As long as the core fundamentals that define bitcoin are solid, then any price correction or dip is just a way of readjusting the market, not a sign that bitcoin is losing value or that its fundamentals are weakening. Price drops are just part of the volatility that comes with bitcoin and they don’t hold as much weight as key indicators like whether miners are still securing the network, whether developers are active, and if adoption is still healthy with users making transactions. If we can push aside the noise from the market and pay more attention to how those crucial bitcoin fundamentals are holding up, we won’t get easily rattled when a dip happens. If the fundamentals are strong, a recovery will definitely follow.
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satoshi23Senior Member
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#2Jul 25, 2022, 07:18 AM
The fundamentals your referring to here has always been constant, should we consider the minus or the mining pools, the behavior of market volatility based on demand or supply and the likes, everything about bitcoin network has been made to align with each other procedures that you see taking place with the price performance, because people are buying an at the same time selling, some seasons determines either the market should rise or fall, so I don't think we should also take that with much seriousness because it does not affect us of any thing with targeted to achieve.
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sam.bullSenior Member
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#3Jul 27, 2022, 07:41 AM
M quite surprised about the fact that you stayed price alone is not enough data But you attributing alot to dip. Nothing is ever certain okay maybe death. Price usually show people sentiment towards a thing and can be considered a measuring factor to performance. The strength is trust As long as people don't loss trust in its system then there's nothing wrong.
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guru365Full Member
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#4Jul 27, 2022, 01:06 PM
If you are talking about recovery, it depends on demand for Bitcoin, since we are using price as a metric.  I do not think fundamentals can make the market recover since it has never changed and is always intact, and yet the market value of Bitcoin fluctuates. If we want the Bitcoin market to recover after a price drop, it needs a market demand position that will outweigh the market sell position.  To get more demand, Bitcoin needs new funds or new capital to flow in the Bitcoin market.  Either from new investors or investors that reenters the market or those who are willing to invest more in the Bitcoin market.  Without these new funds, the one you called fundamentals cannot move the market.
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raven1337Hero Member
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#5Jul 27, 2022, 06:10 PM
What "fundamentals" does Bitcoin have? It's a pure meme investment. People use the word "fundamentals" to describe the instrument's inherent ability to continually provide more value, e.g. a company that has an increasing share of a growing market, or some real estate in a populated, growing area. Bitcoin goes up on value only when more people buy and hold Bitcoin. People buy and hold Bitcoin for exactly ONE reason: to sell their Bitcoin at a higher price later (as opposed to say land they live on or gold their wear around their necks). Another way to put this is that price appreciation is Bitcoin's only fundamental. That means its "fundamentals are strong" when Bitcoin goes up, and its "fundamentals are weak" when the price goes down. It's circular reasoning, like any meme investment. So the truth is exactly the opposite of the OP's subject line: BTC's fundamentals are shattered when the price drops.
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laser2018Full Member
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#6Jul 28, 2022, 01:53 PM
There are key fundamentals that are not listed which affect the price drop, and they matter. The halving mechanism is one of them, and I'll also include supply and demand (scarcity), which comprises Bitcoin's fixed supply cap of 21 million coins. Other factors are also important because it does matter and affect investors one way or another. Factors like government regulation, news media coverage, institutions, whales activity.
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sage_moonSenior Member
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#7Jul 28, 2022, 04:58 PM
It's very optimistic to say that something is certain, but I understand your point. However, this is only valid if you don't have short-term plans for Bitcoin, since you can't guarantee that a short-term investment will result in a guaranteed return. It all depends on the investor's needs and financial strength. But from what I see, Bitcoin remains safe and reliable enough to survive for decades despite the recurring and, in my opinion, somewhat alarmist fears surrounding quantum computing.
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s4t420Member
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#8Jul 30, 2022, 08:42 PM
Bitcoin's volatility is a natural mechanism with bitcoin but that is what many newbies fear the most about bitcoin. Many new to bitcoin investment that I have met would always ask if bitcoin volatility can kick them out of the market overnight and they lose all of their money. This question might sound funny but that is a symbol of fear and lack of understanding of bitcoin's fundamentals, and that is a basic problem. With the understanding of bitcoin's fundamentals, price drops would be the least of worries and one would trade without fear. With other altcoins, it could be different but bitcoin has the best structure that one could trust for either short term or long term investment.
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rocket365Senior Member
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#9Jul 31, 2022, 04:49 AM
I wouldn't see as one side only... behind a sale there is not only a seller... but also a buyer. There is a clear support on it. This is just another dump that could follow a great pump. Just to mention this seems more related to other "economic" aspects. It sounds as a paradox but there is only btc that could provide "liquidity"
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hodler_b34rFull Member
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#10Jul 31, 2022, 10:56 AM
Bitcoin market has rises and drops, with big or small percent so that it has soar and crash with time. It's very normal and how a market should operate naturally, people need to understand it to prepare their psychology, finance, investment capital, then manage risk and their investment plan better. If they can do that, they will no longer see price drops or crashes as bad, while even will change their mindset and take advantage of price drops, crashes to buy more bitcoins at cheaper discount prices. The psychology of market cycle. The psychological pitfalls of a market cycle. Bitcoin's historical corrections. Do things like "Be greedy when others are fearful; and be fearful when others are greedy".
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LoneRocketSenior Member
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#11Jul 31, 2022, 03:19 PM
I agree with you. The price is a short term reflection of liquidity not of the true value of Bitcoin  because the important fundamentals you mentioned such as miners continuing to secure the network, developers' activity, continued adoption of Bitcoin and users continuing to conduct transactions are what reflect the true value in the long term. I also agree with your statement: "If these fundamental factors remain intact, recovery is guaranteed." But the problem lies with speculators because they disregard the fundamental indicators because their goal is profit not the true value of Bitcoin.
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fox_2021Senior Member
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#12Aug 1, 2022, 02:11 PM
Very true. 1 btc is still 1 btc and it is the same btc when bought it earlier when the price was higher against the dollar. You know what they say: “If you like it at $100k, you’ll love it at $60k.” Following that logic, at $10k people would marry bitcoin and make 3 kids from her. As Marylyn Monroe says: “If you don’t love me at my worst, you don’t deserve me at my best.”
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sam_guruFull Member
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#13Aug 1, 2022, 04:23 PM
It was not easy to decide purchasing bitcoins in earliest years when there was nothing to be sure about its development and growth future. It's harder to hold bitcoin during earliest years through many biggest and most challenging tests ever in Bitcoin history. It's extremely hard to hold bitcoins over years through many bull markets while with each market cycle Bitcoin has very high ROIs. Anyone who manage to hold bitcoins they bought years ago, even part of it, till 2026 really deserve what they have done very strongly. As Marylyn said, these Bitcoin ogs really deserve with Bitcoin fortune they own now. Who are not deserved after going through hundreds of "Bitcoin is dead" well? https://99bitcoins.com/bitcoin-obituaries/
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quantumninjaFull Member
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#14Aug 1, 2022, 06:40 PM
This is the nature of fear and panic in the market. What kind of adoption can there be if sellers and buyers won't use bitcoin precisely because of volatility? If a business is losing profits due to volatility - for example, yesterday's bitcoin revenue is down 10% today - then what's the point of selling at a loss (the business needs working capital)? Who, we? Holders? It won't shock us, but businesses trying to integrate bitcoin probably will. A recovery is certainly inevitable, but at the moment, falling (or recovery) makes actual use of bitcoin impossible. Who would want to use something that could suddenly lose value as a means of payment? At least some minimal stability (stablecoins?) is needed.
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johnkingSenior Member
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#15Aug 1, 2022, 09:15 PM
Fundamentals such as digital scarcity, censorship resistance, adoption, network security, and so on are very essential indicators to measure Bitcoin's performance. I am sure many people are concerned about decentralization and censorship resistance. However, the bulk of people who invest in Bitcoin are more concerned about the price. When profit making in the goal of the majority of Bitcoin holders, the price will naturally become the yardstick to measure performance. I assume that most people don't know any benefit of Bitcoin except that they can make a profit from it. This is why most reports you get from most news outlets are about Bitcoin's price performance.
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GigaNodeSenior Member
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#16Aug 2, 2022, 02:38 AM
Me sitting in one corner and laughing people who are panicking right now, this is exactly what I was expecting, people need to panic and maybe start to quit the market? That's the true feeling of a real bear market, it seems like people forget things too easily, or was it because we have ETF and presidents buying Bitcoin today? They don't expect Bitcoin to go back down anymore? Hahaha. Stablecoins are unbeatable for payment solutions, bitcoin is just an option, but for store of value bitcoin remains the best, as for those complaining about Volatility, how will Bitcoin look attractive to big buyers in the future if no dumps occurs? Volatility isn't a plague to Bitcoin or disadvantage, it's actually an advantage.
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benledgerSenior Member
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#17Aug 2, 2022, 08:38 AM
I'm surprised the panic hadn't started at $70k! There was definitely an air of positivity that Bitcoin gad already dipped and was on the way back up again, well its my belief that we have to 'endure' another number of months before we start climbing out of the Bear market The price is related to speculation and has little to do with miners, node runners or developers. The market is volatile because of our sentiment and speculation. If you find yourself needing to sell Bitcoin in a Bear market thats unfortunate Likewise if you are looking to buy in a Bull market that can be unfortunate too Volatility in the market presents many opportunities for everyone.
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proto_viperFull Member
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#18Aug 2, 2022, 01:28 PM
Honestly, this is main reasonable method to consider market as far as one wants to remain sane in this place. Mostly people do that they just look at one minute charts, and after that they get much of FOMO and they sell next minute at very bottom. So here I think that you can get better idea of what is happening onchain means stability of hash rate during price crash. I think that is what differentiate long term winners from the gamblers. If network continues to smooth its transactions and miners do not switch off their machines then so all the day to day price action is sham. Once day ends, temporary dip is nothing but fantastic daytime purchasing prospect to anyone that truly recognizes what decentralized money is to be constructed about.
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maxi_bitFull Member
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#19Aug 2, 2022, 02:51 PM
Do you really believe that it's the fear of disruption in the fundamentals that makes people panic or worried about the price of Bitcoin? If so, then you are wrong, because most people who panic and sell don't even know anything about the fundamental values and properties of Bitcoin, they don't care whether the protocol is still secure or not, they don't worry about miners doing anything, they don't sell because they believe something has stopped working and that is why the price is dropping, but they do it because they believed they are only going to make money from their investments, and now they see their portfolio losing value. Those who understand everything properly and know how this market generally works, they won't be among the panic sellers, because they know that dips and corrections are a part of the whole system, but those who don't know much tend to be impatient and lose control easily, and they are the ones who believe that a dip is basically the beginning of something very big, and it could make Bitcoin go to zero slowly, so they don't want to lose all their money which they believe is going to happen, which is why they go ahead and sell.
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stack_2019Full Member
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#20Aug 2, 2022, 03:54 PM
I always wonder about what the panic sellers actually think when they see the market going down. Do they believe that this is the end and now all the cryptocurrencies are going to have no value and they will lose all their money? If so, does this mean that they have not even checked the history of the coins they have invested in before they do it? How can one put money into something without knowing its history, and if they know the history of Bitcoin, why are they panicking when they know that the market goes down and goes back up again? It's just too dumb for someone to think that if Bitcoin is going down, it means they are going to lose money or are losing money, because the whole history of Bitcoin is in front of you, publicly available for anyone to see and observe, and it clearly shows that Bitcoin has a cyclical movement pattern, in which we have bear markets and bull runs, so when the price starts dropping, we should know that even if it drops a lot, it will still recover later. Besides, when such a person invests in Bitcoin knowing that it has a volatile value, don't they understand that volatility cannot be one-sided, which means that if the value can go up, it can go down as well.
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